The aggregate supply curve shows the relationship between the:
a. The Consumer Price Index and the level of output.
b. Real risk-free interest rate and expected inflation.
c. The nation's average price level (i.e., the implicit price index) and the level of output.
d. Nominal exchange rate and level of output.
e. None of the above.
.C
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Inducements to act in particular ways are called
A) collusive tactics. B) incentives. C) trade-offs. D) opportunity costs.
Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
A) The fact that price exceeds marginal cost B) Excess capacity C) Product diversity D) The fact that long-run average cost is not minimized E) all of the above
The value of total output decreases when labor leaves one industry and goes to another and capital leaves the second industry and goes to the first. This indicates that
A) the first situation was not efficient. B) the second situation is efficient. C) price is greater than marginal cost. D) it would be efficient to return to the first situation.
An increase in the price of the good measured on the horizontal axis will cause the budget line to:
A. shift outward. B. become steeper. C. become flatter. D. shift inward.