In the rational expectations view:
A. Wages are flexible downward but prices are inflexible downward
B. Prices are flexible downward but wages are inflexible downward
C. Discretionary policy tends to be countercyclical
D. Discretionary policy tends to be ineffective
D. Discretionary policy tends to be ineffective
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The bowed outward shape of the production possibilities frontier in the above figure indicates that
A) some resources are better suited for producing computers. B) the opportunity cost of producing more computers decreases as more computers are produced. C) computer technology is subject to the principle of decreasing costs. D) All of the above answers are correct.
Which of the following products would most likely be produced in a monopolistically competitive market?
A) corn B) crude oil C) local water supply D) pizza