What is an imperfectly competitive industry?
What will be an ideal response?
An imperfectly competitive industry is an industry in which single firms have some control over the price of their output.
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The classical model does a poor job of explaining the __________ because it assumes that the __________ always clears
a. long run; labor market. b. long run; financial market. c. short run; labor market. d. short run; financial market. e. short run; housing market.
The economy is in equilibrium, TP = TE, and Real GDP is $2,000 billion. The MPC is 0.75, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending falls by $10 billion. As a result, the TE curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and Real GDP
__________ by __________. A) downward; rise; decrease; falls; $7.5 billion B) downward; fall; increase; rises; $40 billion C) downward; rise; decrease; falls; $40 billion D) upward; rise; decrease; falls; $40 billion E) downward; fall; decrease; falls; $7.5 billion