Refer to the graph shown. If hamburgers are produced by a pure monopoly that maximizes profit, the price of hamburger dinners will be:
A. $ 4.
B. $ 2.
C. $ 6.
D. $ 5.
Answer: C
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If the unemployment rate in the economy is steady at 4 percent per year, how does the short-run Phillips curve predict that the inflation rate will be changing, if at all? What will happen if the unemployment rate now rises to 7 percent per year?
Assume there are no changes to inflation expectations. Provide an appropriate graph to support your discussion.
Examination of data since 1953 indicates that during this period stretching more than half a century, the Phillips curve
A) fails to exist. B) is smoothly upward sloping. C) is smoothly downward sloping. D) slopes smoothly upward at first but then slopes smoothly downward.
At long-run equilibrium in monopolistic competition, there is:
A. Allocation efficiency B. Productive efficiency C. Both allocation and productive efficiency D. Neither allocation nor productive efficiency
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to consume when real disposable income equals $14,000?
A) 0.91 B) 1.1 C) 0.09 D) 0.7