According to this Application, how will an increase in government spending on entitlement programs affect the macroeconomy?
A) It will increase aggregate demand. B) It will increase aggregate supply.
C) It will decrease aggregate demand. D) It will decrease aggregate supply.
A
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A monopolistically competitive firm that earns a profit in the short run will definitely incur a loss in the long run
a. True b. False Indicate whether the statement is true or false
Which strategy would make both firms better off in terms of profit?
a. Both firms advertise.
b. Firm A advertises while Firm B does not advertise.
c. Firm B advertises while Firm A does not advertise.
d. Neither firm advertises.
Behavioral economics is an approach to the study of consumer behavior
A) that emphasizes psychological limitations and complications that potentially interfere with rational decision making. B) that emphasizes the capabilities of individuals to succeed in attaining all their unlimited wants utilizing limited resources. C) that, in contrast to standard approaches in economics, utilizes the ceteris paribus assumption. D) that, in contrast to standard approaches in economics, relies on real-world data to evaluate the usefulness of economic models.
Interdependence of firms is most common in
A) monopolistically competitive industries. B) monopolistic industries. C) monopolistically competitive and oligopolistic industries. D) oligopolistic industries.