If a firm faces a downward-sloping demand curve
A) it will always make a profit. B) the demand for its product must be inelastic.
C) it can control both price and quantity sold. D) it must reduce its price to sell more units.
D
You might also like to view...
The activist response to the monetarist platform says that
A) private spending may show some stability, but monetary or fiscal policy designed to stabilize it will just make things worse. B) private spending is stable partly because consumption spending is based on permanent income. C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GDP. D) None of the above.
In the IS-LM model, we can be at natural real GDP with a low interest rate given the combination of ________ fiscal policy and ________ monetary policy
A) tight, tight B) tight, easy C) easy, tight D) easy, easy
What are the effects of an expansionary fiscal policy on interest rates and output in an open economy with floating exchange rates?
What will be an ideal response?
Some degree of unemployment is __________ in a complex economy
Fill in the blank(s) with correct word