If the price level falls, the real value of a dollar
a. rises, so people will want to buy more. This response helps explain the slope of the aggregate demand curve.
b. rises, so people will want to buy more. This response shifts aggregate demand to the right.
c. falls, so people will want to buy less. This response helps explain the slope of the aggregate demand curve.
d. falls, so people will want to buy less. This response shifts aggregate demand to the left.
a
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Even though monopolistic competition results in inefficiency, it does have which of the following benefits for society?
A) Firms earn zero economic profit in the long run. B) Firms can earn an economic profit in the short run. C) Product variety benefits consumers. D) Marginal cost equals price in the long run. E) The premise of the question is incorrect because nothing in monopolistic competition justifies any economic inefficiency.
A closed economy
a. does not trade with other economies. b. is centrally-planned. c. does not allow financial intermediation. d. All of the above are correct.
Other things being equal, a price-discriminating firm will charge less to the customers who
A. have the most elastic demand for the product. B. are the most rational in making their decisions. C. have the least elastic demand for its product. D. have the lowest incomes.
Waiting for employment and "searching for employment" are both types of:
What will be an ideal response?