All else equal, a decrease in the rate of inflation ________ planned spending and ________ short-run equilibrium output.
A. decreases; decreases
B. increases; decreases
C. decreases; increases
D. increases; increases
Answer: D
You might also like to view...
Buffalo Wild Wings CEO Sally Smith decided to spend more than $200 million on restaurant renovations in an attempt to attract more lunch customers and more families
Like CEOs of other monopolistically competitive firms, Smith knew that without innovating A) her firm would become perfectly competitive. B) her firm had no chance of remaining in business. C) her firm would eventually earn an accounting profit of zero. D) her firm's profits would eventually be competed away by other firms.
Monopoly profits cannot persist in the long run, because there are barriers to entry
a. True b. False Indicate whether the statement is true or false
In which of the following market structures can firms earn economic profits in the long run?
a. perfect competition b. monopolistic competition c. monopoly d. Both b and c are correct.
Puma's share of the athletic shoe market is 30% The own price elasticity of demand for Puma athletic shoes is 2.5 . What would be the own price elasticity of athletic shoes as a whole?
a. 8.3 b. 0.75 c. 0.54 d. 1.5