Since firms in both monopolistic competition and perfect competition earn zero economic profit, price must be equal to average cost for both types of firms.
Answer the following statement true (T) or false (F)
True
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In the 1970s, the U.S. experienced stagflation. What is stagflation?
a. Low inflation and low unemployment b. Low inflation and high unemployment c. High inflation and high unemployment d. High inflation and low unemployment
The cross-price elasticity of demand for generic brand pasta, an inferior good, would be expected to be less than zero
Indicate whether the statement is true or false
Spending by consumers on consumption goods, spending by businesses on investment goods, spending by government, and spending by foreigners on net exports make up
a. disposable national income b. the equilibrium economy c. aggregate supply d. aggregate expenditure e. discretionary spending
List some reasons why the aggregate demand curve of an economy may shift to the left