The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
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A firm has an average total cost of $50. If it sells 20 units of its product at $80 each, what is its profit?
A) $30 B) $600 C) $1,000 D) $1,600
In the long-run, all costs are
a. Fixed costs b. Variable costs c. Sunk Costs d. Marginal Costs
If Q is total real output, K is capital in use, L is labor employed, an increase in the productivity of labor would imply a(n): a. increase in K/L
b. increase in L/K. c. increase in Q/L. d. decrease in Q/K. e. decrease in (Q + K)/L.
You write a check to your landlord to pay the rent on your apartment. To your landlord, your check represents a. a claim to goods and services in the future. b. a good with intrinsic value
c. a double coincidence of wants. d. a good with immediate value.