In the aggregate demand-aggregate supply model, if entrepreneurs become convinced that future profitability of capital has increased,
A) current output will fall, but the price level will rise.
B) current output will rise, but the price level will fall.
C) current output and the price level will both rise.
D) current output and the price level will both fall.
C
Economics
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Refer to the figure above. The MSB curve lies to the right of the demand curve because the production of Good Y involves ________
A) positive externalities B) negative externalities C) increasing returns to scale D) decreasing returns to scale
Economics
A price floor (support price) set above equilibrium:
a. is a minimum legal price set by government above equilibrium. b. causes the quantity supplied to exceed the quantity demanded. c. creates a surplus. d. can represent the effect of a minimum wage. e. all of these.
Economics