In an imperfectly competitive labor market, the firm is faced with a(n) ________ MPP curve and a(n) ________ MR curve

If the demand for a product is elastic, the quantity demanded changes by a smaller percentage than the percentage change in price

Indicate whether the statement is true or false

According to the traditional Keynesian school of thought, expansionary fiscal and monetary policy will: a. increase interest rates, thereby shifting the investment function to the right. b. reduce both consumption and investment spending, thereby eliminating all inflationarypressures

c. reduce investment spending, thereby stabilizing the aggregate supply shocks. d. stimulate both consumption and investment spending, thereby increasingaggregate demand. e. shift the aggregate demand curve to the left, thereby reducing the unemployment rate.