In the long run, firms in both monopolistically competitive markets and perfectly competitive markets earn zero economic profits, but unlike perfectly competitive firms in the long run, monopolistically competitive firms
A) charge a price that is equal to marginal cost.
B) charge a price that is equal to average total cost.
C) do not produce at minimum average total cost.
D) charge a price that is greater than average revenue.
C
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Gross domestic product (GDP) equals the ________ of final ________ produced within a country during a given period of time.
A. market value; goods and services B. quantity; goods and services C. market value; goods D. market value; services
In the aggregate demand–aggregate supply model, which of these changes is most likely when the cost of production increases in the long run? a. A leftward shift of the short-run aggregate supply curve b. A leftward shift of the short-run aggregate demand curve c. A rightward shift of the short-run aggregate supply curve d. An increase in the potential output level increases
e. A decrease in the actual price level decreases.
When income falls
A) the demand for a normal goods rises. B) the demand for an inferior goods rises. C) there is a movement downward along the demand curve for a normal good. D) there is a movement downward along the demand curve for an inferior good.
If the monetary base doubles but the ratios of currency/deposit and reserves/deposits remain the same, then:
a. The money supply doubles. b. The money supply quandrouples. c. The money supply changes by two times the money multiplier. d. The money supply remains unchanged.