At any point along the LM curve,
A) the quantity of money demanded equals the quantity of money supplied.
B) the economy must be in general equilibrium.
C) the nominal interest rate must equal the real interest rate.
D) saving must equal investment.
A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product.
If Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price, then what will be Mega's economic profit?
A. $100 B. $50 C. $150 D. $0
Which of the following appears in M2 but NOT M1?
A. currency B. checking account balances C. money market mutual funds D. traveler's checks
If a firm can increase output by hiring more workers, then
A. it will do so only if the cost of hiring the workers (and purchasing the materials) is more than the increase in revenues associated with the increase in sales. B. it will never do so. C. it will do so only if the cost of hiring the workers (and purchasing the materials) is less than the increase in revenues associated with the increase in sales. D. it will always do so.