Price controls on resources generally lead to surpluses
a. True
b. False
Indicate whether the statement is true or false
False
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Explain the reasons firms might follow the Baumol model of maximizing revenue subject to achieving a minimum level of profits
What will be an ideal response?
If the economy is initially at long-run equilibrium and aggregate demand expands, then in the long run the price level
a) and output are lower than in the original long-run equilibrium. b) is higher and output is the same as the original long-run equilibrium. c) and output are higher than in the original long-run equilibrium. d) is the same and output is lower than in the original long-run equilibrium.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
In 1991, what group of countries began the process of forming the largest free-trade zone in the world?
A. the United States, Canada, and Mexico B. the North Atlantic Treaty Organization C. the European Community D. the Organization of Petroleum Exporting Countries