Refer to Table 21.1. What is the median income on Richlandia?

A principle difference between the original Keynesian model and the new Keynesian model is that in the new version

A) the traditional assumptions of profit maximization is no longer included. B) monetary policy is impotent. C) wages and prices adjust slowly to market conditions. D) All of the above are correct.

In order for a voluntary agreement to be reached in general, transaction costs should be

A) infinite. B) high relative to expected marginal benefits of the agreement. C) low relative to expected marginal benefits of the agreement. D) determined by the Environmental Protection Agency.