Which of the following is not an example of a monopolistically competitive market?

Refer to Figure 26-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely

A) not change interest rates. B) increase the inflation rate. C) increase interest rates. D) decrease interest rates.

A situation in which there is a reduction in quantity supplied to zero when there is the slightest decrease in price is

A) perfectly elastic supply. B) perfectly elastic demand. C) perfectly inelastic supply. D) perfectly inelastic demand.