Figure 10-18
Based on , when the aggregate demand curve is in the position AD1, the economy's position of long-run equilibrium corresponds to point
a.
E1.
b.
E2.
c.
E3.
d.
E1 or E2.
a
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Measuring poverty using an absolute income scale like the poverty line can be misleading because
a. income measures do not include the value of in-kind transfers. b. money is valued less highly by the poor than by the rich. c. the poor are not likely to participate in the labor market. d. income measures are adjusted for the effects of labor-market discrimination.
To increase their individual profits, members of a cartel have an incentive to
a. charge a higher price than the other members of the cartel. b. increase production above the level agreed upon. c. ignore the choices made by the other firms and act as a monopolist. d. charge the same price a monopolist would charge.