The demand curve for a monopolistically competitive firm is
A) the same as the industry demand curve.
B) more elastic than the demand curve of the perfectly competitive firm.
C) less elastic than the demand curve of the perfectly competitive firm.
D) horizontal.
Answer: C
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The inflation rate is the
A) difference between the current period CPI and the base period CPI. B) percentage change in the composition of the CPI market basket from the base year to the next year. C) difference in the price level from one year to the next multiplied by 100. D) difference between the base period CPI and the current period CPI. E) percentage change in the CPI from one year to the next year.
According to Thomas Sargent and other new classical economists,
a. a credible policy to provide low stable money growth can exist with a fiscal policy that generates large deficits. b. a credible policy to provide low stable money growth cannot coexist with a fiscal policy that generates large deficits. c. there is no need for a credible, noninflationary monetary policy to control the government budgetary deficit. d. None of the above
Most U.S. workers have wages well above the legal minimum, so minimum-wage laws do not prevent the wage from adjusting to balance supply and demand
a. True b. False Indicate whether the statement is true or false
Which of the following is true in the circular flow diagram?
a. Household savings flow into the factor market, and investment flows to foreign economies. b. Household savings flow into financial markets, and investment flows back to households. c. Household savings flow into financial markets, and investment flows into product markets. d. Household savings flow into foreign economies, and investment flows into financial markets.