In the above figure, suppose the economy is initially at point a. If the nominal interest rate increases, there is a movement to point such as
A) b.
B) c.
C) d.
D) e.
D
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In the long run, a perfectly competitive firm makes zero economic profit. What incentive does the firm have to stay in business if it is making zero economic profit?
What will be an ideal response?
Suppose the multiplier is 4. ceteris paribus, a change in autonomous spending will change total spending more if the aggregate supply curve is __________ than if it is __________
A) horizontal; upward sloping B) upward sloping; horizontal C) upward sloping; downward sloping D) downward sloping; upward sloping E) There is not enough information to answer the question.
Refer to the information provided in Table 33.6 below to answer the question(s) that follow.
Table 33.6
Refer to Table 33.6. If the exchange rate is $1 = 3 euros, then
A. France will import both peas and carrots. B. the United States will import peas and France will import carrots. C. the United States will import carrots and France will import peas. D. the United States will import both peas and carrots.
In order to achieve market power, monopolistically competitive firms use
A. predatory pricing. B. strategic behavior. C. product differentiation. D. their size.