When the economy enters a recession, unemployment insurance payments
a. fall, causing incomes and spending to fall more slowly than real GDP
b. fall, causing incomes and spending to fall more rapidly than real GDP
c. rise, causing incomes and spending to fall more rapidly than real GDP
d. rise, causing incomes and spending to fall more slowly than real GDP
e. fall, causing incomes and spending to fall at the same rate as real GDP
D
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Total fixed cost
A) increases as output increases. B) does not change as output changes. C) decreases as output increases. D) initially decreases and then increases as output increases.
When businesses cooperate and agree to hold prices high, it is called ____________, and when they reach a noncooperative equilibrium it is called _______________.
A. collusion; competition B. competition; collusion C. commitment strategy; collusion D. collusion; commitment strategy
The observation that interest rates are higher in years ending with a 1 or a 6 represents causality rather than association
a. True b. False Indicate whether the statement is true or false
To maximize its profit, a monopolistically competitive firm produces at the output level at which
a. its price elasticity of demand equals one. b. MR = MC. c. its D curve is tangent to its ATC curve. d. MR = AVC.