A change in expectations in the new classical model

a. shifts the aggregate supply curve.
b. must reflect a change in the anticipated changes in the economy.
c. shifts the aggregate demand curve.
d. both a and b.
e. none of the above.

D

Economics

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The demand for products that provide benefit externalities is generally ________ the demand for products that do not

A) greater than B) less than C) the same as D) greater or less (depending on the market) than

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Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:

a. stay in operation in the short-run. b. earn an economic profit. c. earn an economic profit in the long run. d. shut down.

Economics