Advertising by monopolistically competitive firms can do all of the following EXCEPT
A) lower the consumer's purchase price.
B) help differentiate a firm's product.
C) act as a signal to consumers that the company is serious about staying in business.
D) result in increased profits for the advertising firm.
Answer: A
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A ________ traces out the behavior of the economy over time
A) dynamic equilibrium B) static equilibrium C) steady-state equilibrium D) comparative equilibrium
If the marginal propensity to save is equal to 0.5 in the simple Keynesian model, then a 10-unit increase in government spending will cause output to rise by
a. 5 units. b. 10 units. c. 20 units. d. 25 units. e. 40 units.
For most countries, the Gini coefficient of market income is lower than the Gini coefficient of disposable income.
Answer the following statement true (T) or false (F)
The intersection of the aggregate demand curve and the short-run aggregate supply curve determines:
A. current output and current inflation. B. current output, but not current inflation. C. current inflation, but not current output. D. potential output.