The actual and cyclically adjusted budgets will be equal when the economy is at full employment.

People will buy more of a normal good when their income decreases

Indicate whether the statement is true or false

Product differentiation:

a. is carried out by both perfectly competitive and monopolistically competitive firms. b. is succesful if a firm faces a relatively inelastic demand curve. c. does not allow the firm to raise its price without losing all of its customers. d. cannot be accomplished through advertising or trivial product changes. e. if carried out successfully enables the firms to enjoy market power.