Economists who contend that oligopolists have a strong incentive to engage in R&D say that:
A. the undistributed profits of oligopolists give them a source of readily available, relatively
low-cost funds for financing R&D.
B. entry barriers enable oligopolists to sustain the profit it gains from innovation.
C. the large size of oligopolists' R&D departments allows them to use very specialized,
expensive R&D equipment and employ teams of specialized researchers.
D. all of these are true.
Answer: D
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Refer to Table 27-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should A) decrease the discount rate. B) decrease government purchases. C) conduct expansionary fiscal policy. D) buy Treasury securities.
If there is an expansionary gap in the short run, the adjustment to the long-run equilibrium involves expansion of aggregate demand
Indicate whether the statement is true or false