If total revenues decline when the market clearing price increases, then we know that
A. demand is elastic.
B. demand has zero elasticity.
C. demand is inelastic.
D. demand is unit-elastic.
Answer: A
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Models that focus on factors such as technology shocks rather than "monetary" explanations of fluctuations in real GDP are called
A) rational expectations models. B) real business cycle models. C) short-run macroeconomic models. D) nonmonetary business cycle models.
Policy lags are typically much shorter for monetary policy than for fiscal policy
a. True b. False Indicate whether the statement is true or false
In the open-economy macroeconomic model, other things the same, when a U.S. resident imports a foreign good, the demand for dollars in the foreign-currency exchange market decreases
a. True b. False Indicate whether the statement is true or false
The goods or services that firms in an oligopoly sell:
A. are standardized. B. are not close substitutes. C. are either standardized or close substitutes. D. are close substitutes.