A network externality occurs when
A) there is production cost savings from being networked with suppliers.
B) there is production cost savings from being networked with buyers.
C) the usefulness of a good is affected by how many other people use the good.
D) the usefulness of a good is affected by celebrities who use the good.
Answer: C
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Under the rational expectations hypothesis, if wages adjust rapidly to new information about intended policy actions, monetary policy can have an effect
A) in the long run, but not the short run. B) only in the short run and only if the policy is unanticipated. C) in both the short and the long run. D) only in the long run and only if the policy is fully anticipated.
The new Keynesian economists believed that:
a. wages and prices are flexible in the short run. b. wages are flexible but prices are not flexible in the long run. c. wages are not flexible but prices are flexible in the short run. d. wages and prices are not flexible in the short run. e. wages and prices are not flexible in the long run.