If the market is defined more narrowly to only include a more restricted range of products, then the Herfindahl index will:

The use of fiscal policy to stabilize the economy is limited because

A) changes in government spending and tax rates have a small effect on interest rates. B) the Internal Revenue Service (IRS) resists changes in tax rates because of all the changes they would have to make to the tax code. C) changes in government spending and tax rates have a small effect on aggregate demand. D) the legislative process can be slow, which means that it is difficult to make fiscal policy actions in a timely way.

Which of the following equations best represents a Cobb-Douglas production function?

A) Y = AK1L1 B) Y = AK3/4L1/4 C) Y = AK1/3L3 D) Y = AK2/3L3/2