Under the cartel model, each firm produces where
a. marginal cost equals marginal revenue.
b. price equals marginal cost.
c. the average cost curve is at a minimum.
d. price exceeds marginal cost by the greatest amount.
a
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Monetary policy can
A) shift the short-run trade-off between inflation and unemployment if it affects expected inflation. B) shift the long-run trade-off between inflation and unemployment through changes in cyclical unemployment. C) shift both the short-run and long-run trade-offs between inflation and unemployment if changes in policy are credible. D) shift neither the short-run nor long-run Phillips curve trade-offs between inflation and unemployment.
In 2008, inflation exceeded expected inflation. In 2009, expected inflation exceeded inflation
Therefore the real interest rate was ________ than the expected real interest rate in 2008 and the real interest rate was ________ than the expected real interest rate in 2009. A) less; less B) less; greater C) greater; less D) greater; greater