Peter's Pizzeria sells both pizzas and wings. It wants to increase the sales of its pizzas. If it decides to increase the price of the wings, it is assuming that
a. the pizza and the wings are substitutes
b. the pizza and the wings are complements
c. the pizza and the wings are unrelated in demands
d. it cannot increase the sales of its pizzas
a
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Which set of points would show a movement from depression to full employment?
A. a movement from Point C to B
B. a movement from Point B to A
C. a movement from Point C to E
D. a movement from Point D to C
"With autonomous changes in the policy interest rate, the Federal Reserve cannot determine the long run equilibrium level of the real interest rate or potential output and will only be able to determine inflation"
This statement is consistent with ________. A) the notion that shifts in the MP curve may lead to shifts in the AD and AS curves but the LRAS remains unchanged B) the notion of long-run independence between nominal and real variables C) the notion of monetary neutrality D) all of the above E) none of the above
The essential feature that differentiates imperfectly competitive firms from perfectly competitive firms is that an imperfectly competitive firm:
A. coordinates their output decisions with other firms. B. produces a good with no close substitutes. C. faces a downward-sloping demand curve. D. faces high barriers to entry.
A recessionary gap occurs when the ______ is less than the ______.
a. aggregate demand; aggregate supply b. potential output; actual output c. aggregate supply; aggregate demand d. actual output; potential output