Which of the following is an outcome of advertising for a monopolistically competitive firm?
a. Long-run average costs shift downward
b. The firm's demand curve becomes flatter and shifts inward.
c. The firm's demand curve keeps the same slope and shifts inward.
d. Long-run average costs shift upward.
d
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According to John Maynard Keynes,
A) Say's Law is always correct. B) prices and wages move up and down freely. C) effective demand determines real GDP. D) a free market economy automatically finds equilibrium at full employment. E) supply creates its own demand.
The demand for Honda Accords is probably
A) inelastic but more elastic than the demand for automobiles. B) elastic and more elastic than the demand for automobiles. C) inelastic and less elastic than the demand for automobiles. D) elastic but less elastic than the demand for automobiles.
Frictional unemployment is to ________ as structural unemployment is to ________
A) search; mismatch B) temperature; rigidity C) job training; output gap D) all of the above E) none of the above
When market activity generates a negative externality, the level of output in the market equilibrium is lower than the socially optimal level
a. True b. False Indicate whether the statement is true or false