In both a monopolistically competitive market and a pure monopoly market, firms
A) can make long-run profits.
B) set price greater than marginal cost.
C) are protected by entry barriers.
D) advertise extensively.
Answer: B
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If planned autonomous investment is 500, autonomous consumption 300, induced consumption 2500, savings 500, and government spending and taxes zero, then
A) Ep is 3300 and the economy is in equilibrium. B) Ep is 3300 and the economy is out of equilibrium. C) Ep is 3500 and the economy is in equilibrium. D) Ep is 3500 and the economy is out of equilibrium.
List the major non-price determinants of supply
What will be an ideal response?
Cleaning an environment may lead to: a. less production. b. higher prices
c. lower incomes. d. all of the above.
If expected inflation decreases does the short-run Phillips curve shift? If so, what direction does it shift? Does the long-run Phillips curve shift? If so, what direction does it shift?