A currency depreciation is usually inflationary

The variable G considered in the model encompasses

A) government expenses on goods. B) government expenses on goods and services. C) government expenses on goods and services as well as transfers. D) government expenses on goods and services as well as transfers and public debt service.

Which of the following statements accurately describes a difference between a firm that is a monopolist and one that is a competitive price taker?

a. Marginal revenue and market price are equal for the competitive price taker but not for the monopolist. b. The monopolist does not always produce the output that equates marginal cost and marginal revenue; the competitive price taker does. c. The monopolist charges the highest price possible; the competitive price taker charges a price equal to its per-unit cost. d. A monopolist can earn economic profit in the short run; a competitive price taker cannot.