The short-run aggregate supply curve:
A. Becomes flatter at output levels above the full-employment output
B. Becomes steep at output levels above the full-employment output
C. Is upward-sloping with a constant slope
D. Is horizontal
B. Becomes steep at output levels above the full-employment output
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The meaning of interdependence in a monopolistically competitive market is
A) that it is difficult for firms to get together to collude. B) that products produced by firms will be good substitutes. C) that firms will not take into account the reaction of rival firms. D) that price rigging commonly occurs.
At the end of the year, Ford realizes it has overproduced Fiestas, because 2,500 of them are left unsold. How is this accounted for in that year's GDP? The cars are:
A. considered inventory and their value will increase investment. B. considered durable goods, and their value will increase consumption. C. not counted until they are sold in next year's GDP. D. considered a bad thing and reduce the value of investment.