A double-dip recession occurs when
A. a recession is twice as long as a typical recession.
B. a recession results in twice the increase in unemployment as a typical recession.
C. a recession results in twice the reduction in Real GDP as a typical recession.
D. shortly after coming out of a recession, the economy falls back into another one.
Answer: D
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Under which circumstances could the marginal cost and average variable cost curves be one and the same?
What will be an ideal response?
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. Suppose Always There Wireless charges $0.35 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, what is Always There Wireless's total profit?
A. $11,250 C. $11,050 D. $8,450
In long-run equilibrium, the perfectly competitive firm produces: a. where P = MC = AC
b. at the lowest point on its long-run average cost curve. c. where its long-run average cost curve is tangent to its horizontal demand curve. d. at a level of output such that all of the above are true.
When interest rates in the economy fall, the prices of previously issued bonds
a. must fall. b. must change, but may either rise or fall. c. must rise. d. may remain unchanged.