In larger markets, the quest for profit by firms motivates them to be innovative and produce new and more appealing products.
Answer the following statement true (T) or false (F)
True
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Which one of the following statements is NOT true?
A. The classical model assumes that pure competition exists. B. The classical model assumes that no single seller of a commodity can affect its price. C. The classical model assumes that people suffer from money illusion. D. The classical model assumes that people are motivated by self-interest.
All else equal, more investment takes place at
A. lower market interest rates. B. higher market interest rates. C. higher real interest rates. D. higher nominal interest.
The main avenue by which a temporary change in government purchases in the classical model affects the labor supply is by
A) changing the population. B) affecting the value of the stock market. C) increasing business confidence. D) affecting workers' wealth.
How much is the APS?
C = $4.5 trillion Disposable income = $5 trillion Autonomous consumption = $3 trillion