Author Question: In terms of the aggregate demand and aggregate supply framework, the Great Depression can be viewed ... (Read 61 times)

wenmo · **on:** Jun 30, 2018

In terms of the aggregate demand and aggregate supply framework, the Great Depression can be viewed as a:
a. rightward shift of the aggregate demand curve.
b. rightward shift of the aggregate supply curve.
c. downward movement along the aggregate demand curve.
d. a leftward shift of the aggregate demand curve.
e. a leftward shift of the aggregate supply curve.

Question 2

Which of the following is a distinction between perfectly competitive and monopolistic competition?
a. Perfectly competitive firms must compete with rival sellers; monopolistically competitive firms do not confront rival sellers.
b. Monopolistically competitive firms can raise their price without losing sales; perfectly competitive firms must lower their price in order to sell more of their product.
c. Perfectly competitive firms confront a perfectly elastic demand curve; monopolistically competitive firms face a downward-sloping demand curve.
d. Perfectly competitive firms may make either economic profits or losses in the short run, but monopolistically competitive firms always earn an economic profit.