To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change.
B. increase.
C. decrease.
D. either increase or decrease depending on the relative shifts of AD and AS.
Answer: C
Economics
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An oligopolistic industry is characterized by all of the following except
A) existence of entry barriers. B) the possibility of reaping long-run economic profits. C) firms pursuing aggressive business strategies, independent of rivals' strategies. D) production of standardized or differentiated products.
Economics
A promised amount $FV "n" years into the future is worth how much today, if the interest rate is "i%" per year?
A. $FV/(1 + i)n B. ($FV/n) (i%) C. (1 + i)n/$FV D. [$FV/(1 + i)]n
Economics