Which statement is true?
A. The monopolistic competitor can make a profit in the long run.
B. The monopolistic competitor operates at an output that is the lowest point on the ATC.
C. The monopolistic competitor has a small influence on price because its products are differentiated.
D. None of these statements are true.
C. The monopolistic competitor has a small influence on price because its products are differentiated.
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An emphasis on inflation stability is compatible with a nonactivist stance only when shocks to the macroeconomy are ________
A) permanent supply shocks B) temporary supply shocks C) aggregate demand shocks D) all of the above E) none of the above
If new manufacturers enter the computer industry, then (ceteris paribus): a. some established manufacturers must exit the industry. b. the equilibrium price of computers must rise
c. the supply curve shifts to the right. d. the supply curve shifts to the left.
In Figure 3.2, what is the consumer surplus? 
A. BP*C B. 0PCQ* C. 0ACQ* D. P*AC
If the GDP deflator next year is less than the GDP deflator this year, then the price level has fallen.
Answer the following statement true (T) or false (F)