TAILIEUCHUNG - Lecture Macroeconomics (20/e): Chapter 13 - McConnell, Brue, Flynn

Chapter 13 - Fiscal policy, deficits, and debt. This chapter explores the tools of government stabilization policy in terms of the aggregate demand-aggregate supply (AD-AS) model. Next, this chapter examines fiscal policy measures that automatically adjust government expenditures and tax revenues when the economy moves through | Chapter 13 Monopolistic Competition and Oligopoly Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Pure competition and pure monopoly are the exceptions, not the rule, in the . economy. In this chapter, the two market structures that fall between the extremes are discussed. Monopolistic competition contains a considerable amount of competition mixed with a small dose of monopoly power. Oligopoly, in contrast, implies a blend of greater monopoly power and less competition. First, monopolistic competition is defined, listing important characteristics, typical examples, and efficiency outcomes. Next we turn to oligopoly, surveying the possible courses of price, output, and advertising behavior that oligopolistic industries might follow. Finally, oligopoly is assessed as to whether it is an efficient or inefficient market structure. The Last Word shows how a few big companies now .

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