The supply and demand model
a. tries to include as many realistic details as possible in order to provide insights into real-world competitive markets
b. uses simplifying assumptions while still providing insights into real-world competitive markets
c. uses simplifying assumptions that severely limit its usefulness in practice
d. is too complicated to be useful in practice
e. is unable to explain price movements in most real-world competitive markets
B
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All of the following would increase the growth rate of the economy EXCEPT
A) raising the saving rate. B) stimulating research and development. C) discouraging international trade. D) None of the above answers is correct because they all would increase the growth rate.
In the above figure, the average fixed cost curve is curve
A) A. B) B. C) C. D) D.