If the aggregate price level adjusts slowly over time, then an expansionary monetary policy lowers
A) only the short-term nominal interest rate.
B) only the short-term real interest rate.
C) both the short-term nominal and real interest rates.
D) the short-term nominal, the short-term real, and the long-term real interest rates.
D
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In the short run, a perfectly competitive firm's economic profits
A) must equal zero, that is, the firm earns a normal profit. B) must be positive. C) might be positive, negative (an economic loss), or zero (a normal profit). D) must be negative, that is the firm must incur an economic loss.
Irrespective of whether she is at her optimum, Jenna's valuation of coffee relative to orange juice can be measured by
a. her marginal rate of substitution between coffee and orange juice. b. the price of coffee relative to the price of orange juice. c. the ratio of the quantity of coffee that she buys relative to the quantity of orange juice that she buys. d. the ratio of the quantity of coffee supplied in the market to the quantity of orange juice supplied in the market.