The size of the simple spending multiplier is determined by the proportion of each new dollar that households decide to spend and how much they decide to save
a. True
b. False
Indicate whether the statement is true or false
True
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When a market is monopolistically competitive, the typical firm in the market is likely to experience a
a. positive profit in the short run and in the long run. b. positive or negative profit in the short run and a zero profit in the long run. c. zero profit in the short run and a positive or negative profit in the long run. d. zero profit in the short run and in the long run.
Fiscal policy influences the levels of income and employment
A. through regulatory controls designed to stimulate business investment. B. through antitrust enforcement. C. through presidential and congressional "jawboning" (speeches and related verbal exhortations) designed to promote economic growth. D. through changes in taxes, transfers, and expenditures.
The function of an entrepreneur is: (check all that apply)
a. to maximize the welfare of society. b. to avoid risks and prevent the commercialization of new products and ideas. c. to make strategic business decisions. d. to combine the resources of land, labor, and capital to produce a g
Which of the following industries is best characterized as monopolistically competitive?
A. Local telephone service B. Crude oil C. Toothpaste D. Agriculture