There is a temporary increase in the relative price of crude oil. determine how the response of current aggregate output to this shock depends on the marginal propensity to consume, and explain carefully why you get this result.

Markets and competition in a perfectly competitive market, all producers sell identical goods or services. additionally, there are many buyers and sellers. because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricetakers . true or false: the market for lettuce does exhibit the two primary characteristics that define perfectly competitive markets. true false