An increase in fixed cost will, in the short run, alter the industry's output of
a. both a monopolist and a competitive industry.
b. only a monopolist.
c. only a competitive industry.
d. neither a monopolist nor a competitive industry.
d
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A) applies to proprietorships only. B) applies to proprietorships and partnerships only. C) applies to corporations only. D) applies to all forms of business.
Which of the following statements about the effects of an increase in government purchases is most accurate?
a. In the classical model, it will cause complete crowding out. In the short-run macro model, crowding out will be incomplete. b. In the classical model, it will cause incomplete crowding out. In the short-run macro model, crowding out will be complete. c. Crowding out will be complete in both the classical and short-run macro model. d. Crowding out will be incomplete in both the classical and short-run macro model. e. In the classical model, the increase in government spending will lead to a decrease in investment spending and autonomous consumption. In the short-run macro model, it will not.
Oil producers expect that oil prices next year will be lower than oil prices this year. As a result, oil producers are most likely to
A) place more oil on the market this year, thus shifting the present supply curve of oil rightward. B) hold some oil off the market this year, thus shifting the present supply curve of oil leftward. C) place more oil on the market this year, thus increasing the quantity supplied of oil at lower but not higher prices. D) hold some oil off the market this year, thus decreasing the quantity supplied of oil at lower but not higher prices.
Imagine that this chart is redrawn to represent the marginal propensity to consume of the economy as a whole. How would the chart differ?
a. The slope would be negative.
b. The scale would be larger.
c. The graph would be renamed “Aggregate Expenditure.”
d. The label on the vertical axis would be renamed “Aggregate Expenditure.”