As inflation decreases, households become ________ uncertain leading to ________ spending.

Consider two industries, industry W and industry X. In industry W there are five companies, each with a market share of 20% of total sales. In industry X, there are six companies

One company has a 50% market share and each of the other five firms has a market share of 10%. a. Calculate the four-firm concentration ratio for each industry. b. Calculate the Herfindahl-Hirschman Index (HHI) for each industry. c. What do the values of the two concentration measures imply about the degree of market power in the two industries? Figure 15-18

With an increase in total factor productivity in the Solow growth model,

A) output decreases temporarily and returns to the previous steady state. B) output increases temporarily and returns to the previous steady state. C) the economy reaches a steady state with higher output. D) the economy reaches a steady state with lower output.