Monopolistic competition and perfect competition are similar in that each market structure is characterized by
A) advertising.
B) production at minimum average cost in the long run.
C) a horizontal demand curve.
D) the absence of long-run economic profits.
Answer: D
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Decreases in autonomous spending cause rightward shifts of the aggregate demand and supply curves
Indicate whether the statement is true or false
Economists generally prefer to deal with emissions of pollutants
A. with direct controls. B. by encouraging people not to pollute. C. by subsidizing the installation of pollution-control equipment. D. by taxing emissions.
Exhibit 9-8 Keynesian aggregate expenditures model
?
In Exhibit 9-8, an increase in aggregate expenditures of 100 causes real GDP to rise by:
A. $100. B. $200. C. $300. D. $400.
Compared to a perfectly competitive firm, the demand schedule of a monopolistically competitive firm faces is
A. less price elastic. B. perfectly price inelastic. C. perfectly price elastic. D. more price elastic.