Which of the following is characteristic of a monopolistically competitive firm?
a. The firm faces an upward-sloping demand curve.
b. The firm faces an inelastic demand curve.
c. The firm faces a horizontal demand curve.
d. The firm produces a differentiated product.
d
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If the MPC is 0.9, and the government cuts spending by $200b, the overall effect on GDP will be:
A. a decrease of $2,000b. B. an increase of $2,000b. C. a decrease of $1,800b. D. an increase of $180b.
If the supply curve shifts to the right, how does this affect the market for product A?
a) A higher equilibrium price and a higher equilibrium quantity. b) A lower equilibrium price and a lower equilibrium quantity. c) A higher equilibrium price and a lower equilibrium quantity. d) A lower equilibrium price and a higher equilibrium quantity.
Which of the following does not describe a characteristic of short-term economic fluctuations?
A. The unemployment rate rises during recessions. B. Expansions and recessions are felt throughout the economy. C. Durable-goods industries are less sensitive to short-term fluctuations than service and non-durable industries. D. Expansions and recessions are irregular in length and severity.
In recessions, we expect to run federal budget ___ bc govt spending will be ____ tax revenues.
a. balances; equal to b. surpluses; greater than c. surpluses; smaller than d. deficits; greater than e. deficits; smaller than