In the short-run, higher prices can be caused by:
a. A decrease in aggregate supply, an increase in aggregate demand, or both.
b. A decrease in aggregate supply, decrease in aggregate demand, or both.
c. An increase in aggregate supply, increase in aggregate demand, or both.
d. An increase in aggregate supply, a decrease in aggregate demand, or both.
e. Central bank actions only.
.A
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Assume the four-firm concentration ratio in industry X is 75 percent and that the firms in the industry produce a differentiated product. Industry X most likely would be characterized as:
A) perfectly competitive. B) a monopoly. C) monopolistically competitive. D) an oligopoly.
The federal minimum wage automatically increases every year for inflation
Indicate whether the statement is true or false
According to some economists, the protection granted to infant industries should be
a. terminated after one year. b. for new firms that eventually would develop significant economies of scale in their production processes c. restricted to firms that face little competition d. based on current absolute advantage e. permanent
Suppose the central bank implements a monetary expansion that is not fully anticipated by financial markets. Given this information, we would expect
A) stock prices to rise. B) stock prices to fall. C) stock prices to remain unchanged. D) an ambiguous effect on stock prices. E) none of the above