A falling price level in conjunction with rising output would be evidence in favor of which model?
a. Keynesian model.
b. monetarist model.
c. real business cycle model.
d. a and b.
e. none of the above.
C
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If a natural monopoly is allowed to set its price above its average total cost, then
A) the company makes an economic profit. B) the company incurs an economic loss. C) competitors will enter the market. D) the company will produce more than the efficient amount of output.
Provide a definition of the current account, the capital account, and the cash account. What is the relationship between the three accounts?
What will be an ideal response?
Refer to the payoff matrix below. If Best Treats announces that it will introduce the new health snack, Healthy Snacks ________ believe Best Treats as their incentives ________ align.
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) should not; do
B) should; do
C) should not; do not
D) should; do not
New growth theory is concerned with
A. finding a good way to measure economic growth. B. understanding how compounding works. C. increasing the savings rate in the U.S. D. understanding the forces that increase productivity.