Perfectly competitive firms tend to invest heavily in advertisements because it increases their revenue.
Answer the following statement true (T) or false (F)
False
Perfectly competitive firms do not advertise because they produce homogeneous products.
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When there is an inflationary gap: a. Employment exceeds full employment
b. Employment equals full employment. c. Employment is less than full employment. d. Any of the above is possible.
If there is a ceiling price below the equilibrium level, a decrease in demand will worsen the shortage
a. True b. False Indicate whether the statement is true or false
In the Keynesian-cross model, if the MPC equals 0.75, then a $1 billion decrease in taxes increases planned expenditures by ______ and increases the equilibrium level of income by ______.
Fill in the blank(s) with the appropriate word(s).
The income-expenditure model of real GDP determination is due to the work of
A. Adam Smith. B. John Maynard Keynes. C. Roger Miller. D. Milton Friedman.