If, as a perfectly competitive industry expands, it can supply larger quantities only at a higher long-run equilibrium price, it is
A) a constant-cost industry.
B) an increasing-cost industry.
C) a decreasing-cost industry.
D) a fixed-cost industry.
Answer: B
Economics
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Assuming that the rational expectations hypothesis is NOT in effect, in the short run an expansionary monetary policy should
A) generate stagflation. B) shift the aggregate supply function. C) increase real Gross Domestic Product (GDP) and the price level. D) increase the rate of unemployment.
Economics
Are there any cases where a monopoly is beneficial to the economy?
What will be an ideal response?
Economics