In the short-run, firms in a monopolistically competitive market will earn zero economic profit
a. True
b. False
B
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The figure above shows a production possibilities frontier. In the figure, when the economy moves from point E to point D, what is the opportunity cost of a DVD?
A) 0.25 cell phones B) 0.5 cell phones C) 1 cell phone D) 4 cell phones E) zero
In the short run, a price increase in the goods and services market measured by the CPI will: a. increase the purchasing power of money
b. improve producer profits and, thereby, induce suppliers to expand output. c. increase resource prices, lower profits, and lead to a decline in output. d. reduce the natural rate of unemployment.
The natural rate of unemployment is impervious to economic policy
a. True b. False Indicate whether the statement is true or false
When per capita real GDP is increasing, real output is growing
What will be an ideal response?