An economy at short-run equilibrium with a recessionary gap may:
a. suffer high unemployment for a long time
b. have hyperinflation for a considerable period of time.
c. suffer huge losses due to high input prices for a long time.
d. have a large unsold stock of inventories.
a
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If the monetary base doubles but the ratios of currency/deposit and reserves/deposits remain the same, then:
a. The money supply doubles. b. The money supply quandrouples. c. The money supply changes by two times the money multiplier. d. The money supply remains unchanged.
The employer is responsible for managing funds in an employee's defined contribution pension plan
Indicate whether the statement is true or false
A firm's marginal resource cost curve is
a. horizontal only if the firm is a price taker in the product market b. horizontal only if the firm is a price taker in the resource market c. vertical only if the firm is a price taker in the product market d. vertical only if the firm is a price taker in the resource market e. horizontal only if the firm is a price taker in both the product and resource markets
In the short run, a perfectly competitive firm will shut down if:
a. price is less than average cost. b. marginal revenue is equal to marginal cost. c. total revenue is less than total variable cost. d. total revenue is equal to total cost.