Answer the following questions true (T) or false (F)
1. Monopolistically competitive firms face a perfectly elastic demand curve.
2. New firms are able to enter monopolistically competitive markets because there are low barriers to entry.
3. Firms in monopolistic competition compete by selling similar, but not identical products.
1. FALSE
2. TRUE
3. TRUE
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The duration of unemployment ________ during a recession.
A. remains constant. B. varies between 5 and 14 weeks. C. increases. D. decreases.
The government can turn a shortage of a good into a surplus by
A) imposing a sufficiently low ceiling price. B) offering subsidies to producers. C) persuading producers to increase the amount of the good available. D) supporting the price of the good above the market clearing level.
Compared to the previous 20 years, productivity growth in the United States increased between 1996 and 2014
Indicate whether the statement is true or false
The aggregate supply curve of an economy: a. is a downward-sloping straight line
b. is an upward-sloping curve. c. is a vertical line parallel to the price axis. d. is a horizontal line parallel to the output axis. e. is a ray from the origin.