Refer to Figure 14.2. Suppose workers expect inflation to rise from 1% to 3% next year. Other things equal, this would best be represented by a movement from
A) point A to point B.
B) point B to point A.
C) point B to point C.
D) point A to point C.
B
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A point on the supply curve can illustrate the
A) price and the corresponding quantity supplied. B) marginal cost of that unit of the good. C) price the consumer is willing to pay. D) Both answers A and B are correct. E) Both answers A and C are correct.
The founders of utilitarianism include
a. A. C. Pigou and John Maynard Keynes. b. Jeremy Bentham and John Stuart Mill. c. Augustin Cournot and Jean B. Say. d. A. Kondratieff and Thomas Malthus.
When an industry is a natural monopoly,
a. it is characterized by constant returns to scale. b. it is characterized by diseconomies of scale. c. a larger number of firms may lead to a lower average cost. d. a larger number of firms will lead to a higher average cost.
To close an expansionary gap, the Fed ________ interest rates which ________ planned aggregate spending and ________ short-run equilibrium output.
A. raises; increases; increases B. raises; decreases; decreases C. raises; decreases; increases D. reduces; increases; decreases