The position of the SRAS curve depends on:
A. the expected rate of inflation.
B. the actual rate of inflation.
C. the rate of nominal GDP growth.
D. the long-run real growth rate.
Ans: A. the expected rate of inflation.
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In the above figure, assuming Firm 1 and Firm 2 are the sole producers in the industry, the industry quantity supplied at price P2 is equal to
A) Q1 + Q2. B) Q1 + Q3. C) Q2 + Q4. D) Q4 - Q2.
In an earlier chapter we learned that a risk neutral person would be indifferent to a gamble that involved a coin flip with a $1,000 win if heads and a $1,000 loss if tails. In this chapter that conclusion is qualified. What changes does this chapter introduce that make the earlier conclusion altered?
What will be an ideal response?
Billionaires get most or all of their income from
A. wages and salaries. B. property. C. government transfer payments.
All else constant, all of the following would cause the demand curve for a good to shift except:
A) a change in the cost of producing the good. B) a change in the price of a related good. C) a change in consumer's incomes. D) a change in the number of buyers.