Which of the following is true of monopolistic competition?
A) There is only one seller in this market structure.
B) The product sold by each seller in this market structure is identical.
C) The firms in this market structure earn huge economic profits in the long run.
D) There are a large number of sellers each selling a differentiated product.
D
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Other things being equal, along an aggregate demand curve, a higher price level is associated with
A) a lower nominal GDP. B) a higher real GDP. C) higher income levels. D) a lower real GDP.
Refer to Figure 26-9. In the figure above suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an increase in the required reserve ratio B) an open market sale of Treasury bills C) an open market purchase of Treasury bills D) a decrease in income taxes
Under the kinked demand model, suppose the firm's demand curve shifts rightward but the price at which the kink occurs remains the same. In this case, the firm:
A) does not change its output. B) increases output. C) decreases output. D) We do not have enough information to answer this question.
An increase in the U.S. price level will: a. decrease U.S. exports
b. decrease U.S. imports. c. increase RGDP demanded in the United States. d. both (a) and (c)