The impact of an expansionary fiscal policy may be strengthened if it crowds out some private investment spending.

Discuss the link between real GDP and imports

What will be an ideal response?

When consumers have asymmetric information and when search costs and the number of firms are large, a single-price equilibrium in a competitive market

A) is impossible. B) occurs when price equals average cost. C) occurs when price equals marginal cost plus the search cost. D) occurs when the price is the price a monopoly would set.