Monetarists and new classical economists favor an active role of government in promoting low inflation and economic growth
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that when the price of milo falls by 10 percent, the quantity of bournvita demanded decreases by 5 percent.
Refer to Table 3-1. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. If the price of Kona coffee falls from $6 to $4, the market quantity demanded would
A) decrease by 89 lbs. B) increase by 110 lbs. C) increase by 61 lbs. D) increase by 26 lbs.
Suppose the U.S. GDP growth rate is faster relative to other countries' GDP growth rates. This will
A) shift the aggregate demand curve to the left. B) move the economy up along a stationary aggregate demand curve. C) shift the aggregate demand curve to the right. D) move the economy down along a stationary aggregate demand curve.
Which of the following characteristics is common to monopolistic competition and perfect competition?
A) Each firm faces a downward-sloping demand curve. B) Entry barriers into the industry are low. C) Firms take market prices as given. D) Firms produce identical products.