The Case in Point on obesity suggests that food prices are lower because of:
A) an increase in the in the demand for food only.
B) an increase in the supply of food only.
C) an increase in the demand for food was less than the increase in the supply of food.
D) an increase in the supply of food that was less than the increase in demand for food.
Answer: C) an increase in the demand for food was less than the increase in the supply of food.
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The aggregate expenditure model focuses on the short-run relationship between ________ and ________
A) unemployment; inflation B) planned inventories; unplanned inventories C) real spending; real GDP D) nominal spending; nominal GDP
In a purely competitive industry, each firm:
A. Determines its own price B. Produces a differentiated product C. Can easily enter or exit the industry D. Engages in various forms of nonprice competition