The wage rate rises. As a result, in the short run Real GDP will __________ and the price level will __________

The authors note that advertising can make the consumer demand for a product more elastic (price responsive) by expanding the potential range of consumers

As this change in demand occurs (ceteris paribus), what happens to the optimal advertising-sales ratio? A) Increases B) Decreases C) Remains the same D) We do not have enough information to answer this question

Advertising by monopolistically competitive firms can do all of the following EXCEPT

A) lower the consumer's purchase price. B) help differentiate a firm's product. C) act as a signal to consumers that the company is serious about staying in business. D) result in increased profits for the advertising firm.