Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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The conclusion that a monopoly results in lower output and higher prices than perfect competition relies on the assumption that
A) the demand curve for a monopoly is horizontal. B) consumers are ignorant of the effects of monopoly. C) the costs of production are the same whether the industry is perfectly competitive or a monopoly. D) elasticity of demand varies along the market demand curve.
According to the loanable funds framework, if businesses see new opportunities to expand capacity by building new factories, the likely effect will be that:
What will be an ideal response?
long term contracts are less likely when
What will be an ideal response?
If fiscal policy implementation causes some crowding out, the ________ shift of the aggregate demand curve will be ________ than it would have been if no crowding out had occurred.
A. leftward; larger B. rightward; smaller C. rightward; larger D. leftward; smaller