If prices of goods and services are free to quickly adjust, then:
A.
A negative demand shock would lead to increased unemployment in the short run
B.
A positive demand shock would lead to increased unemployment in the short run
C.
A negative demand shock would have no short-run effect on unemployment
D.
There would be no short-run demand shocks
C.
A negative demand shock would have no short-run effect on unemployment
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Which of the following increases the supply of a good?
A) Prices of inputs used to produce the good rise. B) Productivity improves. C) Producers expect higher prices for the good in the future. D) There is a decrease in the price of a complement in production. E) The number of producers decreases.
If a monopolistically competitive firm has excess capacity
A) it is experiencing diseconomies of scale. B) it produces a level of output that places it on the negatively sloped portion of its average total cost curve. C) it is producing beyond the minimum efficient scale. D) it has exhausted all economies of scale.