The short-run aggregate supply curve has a(n) ________ slope because as prices of ________ rise, prices of ________ rise more slowly
A) infinite; inputs; final goods and services B) positive; final goods and services; inputs
C) infinite; final goods and services; inputs D) positive; inputs; final goods and services
B
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If the firms in a competitive price-searcher market are suffering short-run losses, which of the following will occur in the long run?
a. New firms will enter the industry. b. Customers of firms that leave the industry will switch to remaining firms. c. Firms that remain in the industry will face reduced demand. d. Firms will continue to incur losses.
Under a fractional-reserve banking system, banks
a. hold more reserves than deposits. b. generally lend out a majority of the funds deposited. c. cause the money supply to fall by lending out reserves. d. All of the above are correct.
The aggregate demand curve is
A. U Shaped B. Horizontal C. Vertical D. Downward sloping
A flight to quality refers to a move by investors:
A. away from low-quality bonds towards high-quality bonds. B. towards securities of other countries and away from U.S. Treasuries. C. towards precious metals and away from U.S. Treasury bonds. D. away from bonds towards stocks.