A situation in which one firm's actions with respect to price, quality, advertising and related changes may be strategically countered by the reactions of one or more other firms in the industry is known as

Network externalities refer to the situation where the usefulness of a product increases with the number of consumers who use it

Indicate whether the statement is true or false

Assume the equilibrium level of output is less than full employment. To achieve full-employment equilibrium, the aggregate demand curve must shift to the right by

A. An amount greater than the recessionary GDP gap because the spending increase raises the price level. B. An amount less than the recessionary GDP gap because the spending increase causes the multiplier process to occur. C. An amount less than the recessionary GDP gap because the spending increase raises output and prices. D. The amount of the recessionary GDP gap.