The graph for a monopolist’s profits shows that at output QM (100) and price PM ($6) the firm’s total revenue is ______.
a. $100
b. $400
c. $600
d. $800
c. $600
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What is the goal of fiscal policy, and what tools have policymakers traditionally used to conduct fiscal policy?
What will be an ideal response?
A permanent reduction in planned real investment spending leads to
A) a more than proportional increase in real GDP. B) a more than proportional decrease in real GDP. C) a less than proportional decrease in real GDP. D) a proportional decrease in real GDP.
In the Keynesian range, the:
a. Aggregate supply curve is vertical. b. Aggregate supply curve is horizontal. c. Aggregate demand curve is vertical. d. Aggregate demand curve is horizontal. e. Aggregate demand is downward-sloping.
Holding all other forces constant, if increasing the price of a good leads to a decrease in total revenue, then the demand for the good must be
a. unit elastic. b. inelastic. c. elastic. d. None of the above is correct because a price increase always leads to an decrease in total revenue.