If the demand for high definition televisions increases and the supply of high definition televisions increases, then
A) it is clear that prices will increase; the change in the quantity of televisions sold is ambiguous.
B) it is clear that prices will decrease; the change in the quantity of televisions sold is ambiguous.
C) it is clear that quantity sold will increase; the change in the price of televisions is ambiguous.
D) it is clear that quantity sold will decrease; the change in the price of televisions is ambiguous.
C
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When the aggregate demand curve and the short-run aggregate supply curve intersect
A) the long-run aggregate supply curve must also intersect at the same point. B) structural and frictional unemployment equal zero. C) inflation must be increasing. D) the economy is in short-run macroeconomic equilibrium.
Which of the following properties can be associated with an indifference curve of a risk-averse investor?
a. Indifference curve for a risk-averse investor is a vertical line parallel to the variance axis. b. Two indifference curves can intersect at the equilibrium combination of risk and return. c. An indifference curve closer to the expected return axis gives a better utility than the one farther away. d. Indifference curve for a risk-averse investor is always downward sloping.