Which of the following is a normative macroeconomic statement?
a. An increase in government spending will reduce unemployment.
b. An active government policy should be employed to maintain a healthy economy.
c. The unemployment rate is 10 percent.
d. There is a positive relationship between inflation and the rate of growth of money
e. Gross domestic product grew 3 percent this year.
B
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Tony's Italian Ice is a monopolistically competitive firm. If Tony's earns a profit in the short run, which of the following is most likely to occur?
A) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the right. B) New firms that sell Italian ice will enter the market and Tony's demand curve will become more inelastic. C) New firms that sell Italian ice will enter the market and Tony's cost curves will shift to the left. D) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the left.
When a firm relies on social media ads to reach potential customers, the firm is engaging in
A) direct marketing. B) mass marketing. C) false marketing. D) none of the above.