Which of the following explains the effect of prices on profits in the short-run?
a. The direct relationship between aggregate quantity demanded and national output.
b. The direct relationship between aggregate quantity supplied and the price level.
c. The inverse relationship between aggregate quantity demanded and national output.
d. The inverse relationship between aggregate quantity supplied and profits.
e. The inverse relationship between aggregate quantity supplied and national output.
b
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If the current account balance is $30 billion, and the capital and financial account balance is $35 billion, then the official settlements account balance is ________ billion, and the official reserves ________
A) $5 billion; increase B) -$5 billion; increase C) $5 billion; decrease D) -$5 billion; decrease
A monopolist that chooses price
A) necessarily produces less than a monopolist that chooses quantity, hence the laws against price fixing. B) produces the same amount as a monopolist that chooses quantity. C) produces more than a monopolist that chooses quantity, thus the irony of laws against price fixing. D) could produce more or less than a monopolist that chooses quantity since the demand curve is not specified.