The basic Keynesian model is built on the key assumption that:
A. prices are prevented from changing frequently by government regulations.
B. firms meet the demand for their products at preset prices.
C. firms price their products so as to see a preset quantity of output.
D. menu costs are not significant.
Answer: B
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A) MR = 0. B) MR = P. C) MR = MC. D) P = MC.
The Mint Act of 1792, following the ideas of Thomas Jefferson and Robert Morris, set the U.S. up as
(a) a silver standard country. (b) a paper-money country. (c) a gold-standard country. (d) a bimetallic country.
If a sailboat manufacturer has an agreement with the firm that produces the engines for the sailboats, this is an example of a ________ agreement.
A) vertical B) rightward C) horizontal D) leftward
Which strategy was the most successful in the prisoners' dilemma tournament?