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