Suppose you compete in a Cournot oligopoly market consisting of six firms. The equilibrium market price and quantity are $5 and 10 units, respectively. The marginal cost for each firm is $3. Based on this information, we know the price elasticity of the market demand is:

From the late 1980s to 2000, the natural rate of unemployment

A) fluctuated up and down, following the path of the actual rate of unemployment. B) gradually declined. C) climbed sharply. D) held constant.

In the rational expectation model, government control over aggregate demand: a. gives it the power to alter real output and employment even when the effects of government policies are expected. b. can affect real output in the short-run only if policies are unexpected

c. has potential to change long-run real output as long as the aggregate supply curve is vertical. d. has highly unpredictable effects on real output in the long run.