Perfectly elastic demand is represented by a demand curve that
A) is vertical.
B) is horizontal.
C) has a 45° slope.
D) is a rectangular hyperbola.
B
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A monopolistic competition is a market structure where:
a. a large number of firms compete in a market and sell non-identical products b. a small number of firms, perhaps just two or three, sell all of the output in a market. c. a large number of firms compete in a market and sell identical products. d. a firm produces and sells all of the output—for which there are no close substitutes—in the market.
Figure 14-2
If the Fed anticipates that the conditions illustrated by AD1 and SRAS in will be present in the near future, it should
a.
shift to a more restrictive policy.
b.
shift to a more expansionary policy.
c.
request that Congress raise tax rates.
d.
refuse to buy any more U.S. securities.