A short-run open-economy model with demand shocks can analyze the effect on if output prices and factor prices are sticky.
a. inflation
b. real economic activity (real GDP and unemployment)
c. long-run variables
d. expectations
Ans: b. real economic activity (real GDP and unemployment)
Economics
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If a monopolistically competitive firm is in long-run equilibrium and average cost equals $150, then the market price must be $150
a. True b. False
Economics
Producer surplus equals
a. Value to buyers - Amount paid by buyers. b. Amount received by sellers - Costs of sellers. c. Value to buyers - Costs of sellers. d. Value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers.
Economics