Temporary changes in the price level caused by changes in the business cycle are called:
A. demand pull inflation.
B. cost push inflation.
C. demand push inflation.
D. cost pull inflation.
A. demand pull inflation.
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During a(n) ________ the demand for money decreases because ________
A) recession; the price level rises B) recession; real GDP decreases C) equilibrium; real GDP decreases D) recession; nominal GDP increases E) expansion; real GDP decreases
For a firm in monopolistic competition, selling costs
A) increase costs and reduce profits. B) always increase demand. C) can change the quantity produced and lower the average total cost. D) can lower total cost. E) have no effect on the quantity sold.
In the short run for a particular market, there are 5,000 firms. Each firm has a marginal cost of $7 when it produces 200 units of output. One point on the market supply curve is
a. quantity = 5,000 . price = $7. b. quantity = 35,000 price = $35,000. c. quantity = 1,000,000 . price = $7. d. quantity = 1,000,000 . price = $35,000.
A consumer's preferences for right shoes and left shoes can be represented by indifference curves that are
a. bowed out from the origin b. bowed in toward the origin c. straight lines d. right angles