In the real intertemporal model, if future total factor productivity increases, this captures the effects of
A) intemporal substitution.
B) Ricardian equivalence.
C) the government expenditure multiplier.
D) news shocks.
D
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In the long run in a monopolistically competitive industry,
a. economic profit will be positive b. the price will be driven to zero c. the firm will not operate where MR = MC d. economic profit will be zero e. the price will exceed average total cost
Demand and supply shifts will cause a price to change, but a change in the price of only a good affects quantity demanded and quantity supplied, never demand and supply itself
a. True b. False Indicate whether the statement is true or false
There is no way that externalities can be corrected.
Answer the following statement true (T) or false (F)
Explain what is meant by the time inconsistency of monetary policy