Suppose that competitive price-searcher firms are experiencing losses. In the transition from this initial situation to a long-run equilibrium,
a. the number of firms in the market decreases.
b. each existing firm experiences a decrease in demand for its product.
c. each firm experiences an upward shift to its marginal cost and average total cost curves.
d. each existing firm's average total cost falls to bring economic profit back to zero.
A
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Use the following table which shows the aggregate demand and aggregate supply schedules for a hypothetical economy to answer the next question.Real Domestic Output Demanded (in billions)Price Level (index value)Real Domestic Output Supplied (in billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000The equilibrium price and output levels will be ________.
A. 250 and $7,000 B. 200 and $5,000 C. 300 and $8,000 D. 200 and $6,000
What are two ways the government can use to maintain full employment in an open economy? Also give an example for each
What will be an ideal response?
Michael values a stainless steel refrigerator for his new house at $3,500, but he succeeds in buying one for $3,000 . Michael's consumer surplus is
a. $500. b. $3,000. c. $3,500. d. $6,500.
An individual would suffer lower losses or maybe even gain from an unexpectedly higher inflation rate if
a. she held much currency and on net was a lender. b. she held much currency and on net was a borrower. c. she held little currency and on net was a lender. d. she held little currency and on net was a borrower.