For a monopoly, MC = MR < P so that MC < MU.
Answer the following statement true (T) or false (F)
True
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When actual output is less than potential output, there is ________ output gap and the rate of inflation will tend to ________.
A. an expansionary; increase B. a recessionary; increase C. an expansionary; decrease D. a recessionary; decrease
A regulation that specifies the maximum amount of a good or service that may be imported during a specified period of time is a:
A) quota. B) tariff. C) nontariff barrier. D) export quota.
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
A. The domestic price of automobiles would fall. B. The supply of foreign automobiles to the domestic market would decline, causing auto prices to rise. C. The number of unemployed workers in the domestic automobile industry would rise. D. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.
Refer to the table for a fictional economy. The changes in the budget conditions between 2000 and 2001 best reflect:
A. demand-pull inflation.
B. cost-push inflation.
C. an expansion of real GDP and an automatic increase in tax revenues.
D. a contractionary fiscal policy.