Technological improvements cause
A. Existing firms to produce more output.
B. Some firms to exit but the remaining firms to produce more output.
C. New firms to enter but existing firms to continue producing their old output levels.
D. Existing firms to continue producing their old output levels but to lower the price of the products.
Answer: A
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What will be an ideal response?
If the Fed's policies aim to increase aggregate demand, the Fed must fear
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