A monopolistically competitive firm ________ where marginal revenue equals marginal cost.

An increase in government purchases of $200 billion will shift the aggregate demand curve to the right by

A) less than $200 billion. B) more than $200 billion. C) $200 billion. D) None of the above are correct. This policy shifts the long-run aggregate supply curve.

If the elasticity of supply of a good was 2, how much would the price have to increase to lead to an increase in output of 6 percent? a. 3 percent

b. 4 percent. c. 8 percent. d. 12 percent.