A monopolistically competitive firm that is earning profits will, in the long run, experience all of the following except
A) new rivals entering the market.
B) a decrease in demand for its product.
C) demand for the firm's product becomes more elastic.
D) a decrease in the number of rival products.
Answer: D
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The aggregate demand curve shows:
a. how the equilibrium level of aggregate expenditure changes in response to changes in production. b. the amount people spend at different real GDP levels. c. the positive relationship between the price level and real GDP. d. the negative relationship between aggregate expenditure and real GDP. e. how the equilibrium level of aggregate expenditure changes as the price level changes.
In the balance of payments, any transaction that leads to a receipt by a resident of a country or its government is a(n)
A. deficit item. B. asset. C. minus item. D. surplus item.