Which of the following is always associated with monopolistic competition?
A. identical products
B. economic profits in the short run
C. product differentiation
D. Demand curves become more inelastic as new entry occurs.
Answer: C
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A Consumer Price Index of 120 for a certain year means that the average price of consumer items in that year was
A. 20% higher than the average price of the preceding year. B. 120% higher than the average price in the base period 1982-84. C. 20% higher than the average price in the base period 1982-84. D. about $120 per basket of consumer goods and services.
A rise in the value of a currency is called a(n)
A) consolation. B) integration. C) appreciation. D) depreciation.
The point at which the aggregate expenditure line intersects the vertical axis is determined by the marginal propensity to consume and real interest rate
a. True b. False Indicate whether the statement is true or false
The aggregate quantity of goods and services demanded changes as the price level falls because
a. real wealth falls, interest rates rise, and the dollar appreciates. b. real wealth falls, interest rates rise, and the dollar depreciates. c. real wealth rises, interest rates fall, and the dollar appreciates. d. real wealth rises, interest rates fall, and the dollar depreciates.