The existence of an inflationary gap or an recessionary gap depends on the

a. aggregate supply only.
b. expenditure schedule.
c. leakages schedule.
d. injections schedule.
e. aggregate demand and aggregate supply schedules.

e

Economics

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The argument that ________ receives strong support from the innovative policy response to the recent financial crisis

A) rules can be too rigid B) discretionary policies are vulnerable to the time-inconsistency problem C) money is the sole source of fluctuations in aggregate demand D) changes in policies can change the coefficients in macroeconometric models

Economics

In the long run, a monopolistically competitive firm will set price:

a. at the intersection of the marginal cost and demand curves. b. at the intersection of the average total cost and demand curves. c. higher than the competitive level, but lower than the monopoly price. d. higher than the marginal cost, but lower than average total cost.

Economics