Unlike discretionary fiscal policies, automatic stabilizers have a quick impact and therefore do not suffer from time lag

Monopolistically competitive firms are similar to perfectly competitive firms in the sense that both face horizontal demand curves for their product

a. True b. False

When increases in the demand for food—shown as rightward shifts in the demand curve— are relatively small when compared to the increases in food supply—shown as rightward shifts in the supply curve—equilibrium price

a. rises and equilibrium quantity falls b. falls and equilibrium quantity falls c. rises and equilibrium quantity rises d. falls and equilibrium quantity rises e. and equilibrium quantity stay the same