The low point of the business cycle is the _____; the high point is the _____.

Fill in the blank(s) with the appropriate word(s).


trough; peak

Economics

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The production function shows that potential GDP increases when the

A) price level rises. B) price level falls. C) inflation rate falls. D) quantity of labor employed increases. E) the wage rate falls.

Economics

If the price of a British pound increases, more Britons will be willing to supply pounds to the foreign exchange market

a. True b. False

Economics

If total revenue is less than total costs at q*, the firm is ______.

a. earning a normal rate of return b. generating total economic losses c. generating total economic profits d. earing zero economic profits

Economics

If a rising price leads to falling revenues, then demand is elastic.

a. true b. false

Economics