What sequence of events results from an increase in aggregate demand?
A. The price level falls, inventories increase, firms respond by reducing output and employment.
B. The price level rises, inventories increase, firms respond by increasing output and employment.
C. The price level falls, inventories decline, firms respond by increasing output and employment.
D. The price level rises, inventories decline, firms respond by increasing output and employment.
Answer: D
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The number and availability of discount brokers has grown rapidly since the mid-1970s. The efficient markets hypothesis predicts that people who use discount brokers
A) will likely earn lower returns than those who use full-service brokers. B) will likely earn about the same as those who use full-service brokers, but will net more after brokerage commissions. C) are going against evidence suggesting that full-service brokers can help outperform the market. D) are likely to outperform the market by a wide margin.
Monopolistic competition is characterized by: a. homogeneous products
b. barriers to entry. c. firms earning economic profits in the long run. d. differentiated products.
Average total cost will increase if __________
Fill in the blank(s) with correct word
Discuss the relationships among the various monetary aggregates
What will be an ideal response?