In the simple Keynesian cross model with no government or foreign sectors, the value of the multiplier is defined as
A) 1/(MPC - 1). B) 1/(1 - MPC). C) 1/(MPC + 1). D) 1/MPC.
B
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Suppose a small regional airport is served by one of the major airlines, and a new low-cost airline enters the market
If the major airlines cuts its air fares in this market to levels that are below its marginal cost in response to the other firm's entry, then the major airline may be engaging in A) parallel conduct. B) parallel pricing. C) predatory pricing. D) unlawful collusion.
Economists call all the goods generated by a firm its total ______.
a. margin b. output c. production d. sales
Refer to the information provided in Figure 26.7 below to answer the question(s) that follow.
Figure 26.7Refer to Figure 26.7. $700 million is the level of aggregate output that can be sustained in the long run
A. without inflation. B. only with inflation. C. only with unemployment. D. only with deflation.
In a monopoly market structure, the firm (the monopolist) always
A) is the whole industry. B) produces too much. C) sells faulty products. D) earns economic profit.