One type of financial intermediary now rising in relative importance is

Unlike a perfectly competitive firm, for a monopolistically competitive firm

A) price ? marginal cost for all output levels. B) price ? average revenue for all output levels. C) price ? marginal revenue for all output levels. D) marginal revenue = marginal cost at the profit-maximizing output.

If the economy is in a deep recession, a modest increase in aggregate demand is likely to cause _____ in prices and _______ in output level.

a) an increase; an increase b) an increase; little or no change c) a decrease; an increase d) little or no change; an increase e) little or no change; little or no increase