Automatic stabilizers reduce fluctuations in GDP by
a. eliminating spending shocks
b. increasing the amount of spending each year
c. reducing the additional spending that occurs in each round of the multiplier
d. increasing saving
e. reducing the need for government involvement in the economy
C
Economics
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What is true of the price elasticity of demand faced by a monopoly firm?
A) Demand is inelastic. B) Demand is more elastic at lower prices and more inelastic at higher prices. C) Demand is perfectly elastic because the monopolist has no competition. D) Demand becomes more elastic as the range of imperfect substitutes expands.
Economics
Which of the following is TRUE of the price charged by a monopolistically competitive firm at the profit-maximizing level of output?
A) P > MC B) P = MC C) P = MR D) P < AVC
Economics