Monopolistically competitive firms are similar to perfectly competitive firms in the sense that both face horizontal demand curves for their product
a. True
b. False
B
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Increases in the price level will
A) raise consumption because some goods and services are more affordable. B) raise consumption because real wealth increases. C) lower consumption because real wealth decreases. D) lower consumption because goods and services are less affordable.
Which interest rates is most relevant in determining aggregate expenditures?
A) federal funds rate B) short-term real interest rate C) long-term nominal interest rate D) long-term real interest rate
The government deficit
A) is equal to the government surplus plus taxes minus government spending. B) is equal to GDP minus GNP. C) is equal to disposable income plus the current account surplus. D) is equal to the negative of government saving.
A study by labor economists Hamermesh and Biddle found that
a. shorter-than-average men earn more than shorter-than-average women, all else equal. b. above-average looking people earn more than average-looking people, all else equal. c. shorter women earn more than taller women, all else equal. d. All of the above are correct.