Refer to Figure 28-2. Suppose the Fed used contractionary policy to push short-run equilibrium to point C. If the short-run equilibrium remained at point C long enough
A) the short-run Phillips curve would shift up.
B) the economy would stay at point C in the long run.
C) the economy would move back to point A.
D) the short-run Phillips curve would shift down.
D
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The relative price of a magazine in the above figure is
A) 0.5 of a hamburger per magazine. B) 1 hamburger per magazine. C) 1.33 hamburgers per magazine. D) 8 hamburgers per magazine.
If Joe says that nothing comes close to a Pepsi, his demand for Pepsi is likely to be
a. relatively price elastic b. relatively income elastic c. relatively price inelastic d. unit elastic e. infinitely elastic
Which of the following best characterizes the tradeoff faced by a monopolist when deciding what quantity to produce?
A. The firm can increase its output, but needs to lower its price for only the marginal unit of output. B. The firm can increase its output, but to do so it must charge a higher price to all customers. C. The firm gets more revenue from new customers by increasing output, but gets less revenue from existing customers given that it lowered its price. D. The firm gets less revenue from new customers by increasing output, but gets more revenue from existing customers given that it lowered its price.
Higher interest rates can cause the ________ curve for new cars to ________.
A. demand; shift to the right. B. supply; shift to the right. C. demand; shift to the left. D. supply; shift to the left.