In this graph, expansionary policy causes ______.
a. equilibrium to shift down along the aggregate demand curve
b. equilibrium to shift up along the aggregate demand curve
c. the aggregate demand curve to shift to the left
d. the aggregate demand curve to shift to the right
d. the aggregate demand curve to shift to the right
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Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206If Smith and Jones are dividing their time efficiently and producing fewer than 10 computers and more than 120 calculators per hour, then Smith will ________ and Jones will ________.
A. produce only calculators; split his time between computers and calculators B. produce only calculators; produce only computers C. produce only computers; produce only calculators D. split his time between computers and calculators; produce only calculators
Assume a monopolist regularly posts price increases three months in advance of when they will take effect. After a small number of new firms enter the market, the original firm continues the practice of announcing price increases in advance
Following the court's logic in the Ethyl case, the firms in this market would not be guilty of price fixing behavior. Indicate whether the statement is true or false
In the classical model, if money growth and velocity are constant, then:
a. the price level will rise at the rate of output growth. b. the price level will be constant. c. the price level will fall at the rate of output growth. d. none of the above.
If two steel firms decide to merge, this merger would be classified as:
a. a horizontal merger. b. a vertical merger. c. a conglomerate merger. d. either a vertical or conglomerate merger depending on the nationality of the companies. e. either a vertical or conglomerate merger depending on the market shares of the two companies.