A perfectly competitive firm will earn ________ economic profits in the range of output for which the firm's price is above its minimum average total cost.

In the new Keynesian model, the ultimate effect on output of an anticipated aggregate demand shock is ________

A) less than if that event was unanticipated B) greater than if that event was unanticipated C) the same as would develop if that event had never occurred D) dependent on whether or not that event is temporary or permanent

International capital-flow shocks to an economy with fixed exchange rates necessitates

A. an offsetting fiscal policy. B. intervention in the foreign exchange market by the domestic monetary authorities. C. devaluation or revaluation of the domestic currency. D. international borrowing by the domestic government.