The unique equilibrium output level in the short-run is found at the intersection of the following curves
A) aggregate demand and aggregate supply
B) aggregate demand and 45 degree line
C) aggregate supply and 45 degree line
D) aggregate demand and short-run aggregate supply
E) aggregate supply and long-run demand
B
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A profit-maximizing firm should spend an additional dollar on advertising so long as this expenditure results in more than one dollar of:
a. additional sales. b. reduced costs. c. increased profits. d. demand.
Because GDP does not fully account for improvements in the quality of goods, the GDP calculation
a. tends to overstate the true value of output in the United States. b. tends to understate the true value of output in the United States. c. provides an accurate value of output in the United States. d. measures the value correctly because price changes always capture the value of quality changes.
A characteristic common to most imperfectly competitive markets is
A) a homogeneous product. B) unexploited economies of scale. C) non-price competition among firms. D) inelastic market demand curves. E) common pricing among firms.
If the inflation rate in an economy is higher than expected, which of the following groups in the society would be most likely to gain?
a. Borrowers b. Lenders c. Persons holding large amounts of money d. Persons on fixed incomes e. Workers under contract without a cost of living adjustment