The AD, SRAS, and LRAS curves each show a relationship between which two economic variables?
A. The aggregate price level and output
B. The aggregate price level and the interest rate
C. Output and the interest rate
D. Output and unemployment
Answer: A
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All of the following characteristics apply to monopolistic competition EXCEPT
A) a large number of firms compete. B) each firm produces the same identical product. C) firms compete on product quality, price, and marketing. D) there are no barriers to enter or exit the industry.
The Federal Reserve's principal tool in the manipulation of aggregate demand is the personal income tax
a. True b. False Indicate whether the statement is true or false
Suppose a recent study shows that in Country A, consumers pay an average of about $169,000 per job per year maintained by import protection. Given that these employees earned much less than $169,000 per year, it would be much cheaper to simply pay these workers not to work and impose no import restrictions. Why do you think that, in spite of the fact that there is a net loss in national well-being, the government of Country A has maintained these barriers?
What will be an ideal response?
Tariffs ________ a deadweight loss and import quotas ________ a deadweight loss
A) create; create B) do not create; create C) create; do not create D) do not create; do not create