In the figure above, if real GDP is $10 trillion, aggregate planned expenditure is
A) equal to $10 trillion and there are no unplanned inventory changes.
B) less than $10 trillion and unplanned inventory changes are positive.
C) equal to $10 trillion and unplanned inventory changes are negative.
D) more than $10 trillion and unplanned inventory changes are negative.
E) equal to $10 trillion and unplanned inventory changes are positive.
D
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Use the following diagram to answer the next question.
All else equal, which of the following events would cause a shift from (I + G + NX)1 to (I + G + NX)3?
A. Businesses built 225 new apartment buildings. B. Government spending on national defense was reduced by $1 billion. C. The government cut taxes by $100,000 million. D. Russia purchased $75 million of wheat from domestic farmers.
Refer to Figure 13-16. Figure 13-16 depicts a monopolistically competitive barber shop. Use the diagram to answer the following questions
a. Suppose the average variable cost of production is $15 when output equals 110 haircuts and $15.25 when output equals 140 haircuts. If the firm wants to maximize its profit or minimize its losses, how many haircuts will it produce and what price should it charge? Explain your answer. b. Calculate the firm's profit or loss. c. What is likely to happen in this industry over time as it moves to its new long-run equilibrium? d. Suppose the barber shop depicted in the diagram remains in the industry. Is this barber shop likely to produce this same quantity of haircuts as in part (a) in the long run?
The inputs used to produce goods and services are called
a. profit factors. b. marginal products. c. labor demands. d. factors of production.
The ability to use price discrimination is ______.
a. available only to government regulated firms b. exclusive to government-owned monopolies c. available to all firms who are currently profitable d. available only to firms with market power