Which of the following equations is CORRECT?
A) accounting profit = total revenue - (explicit costs + implicit costs)
B) normal profit = accounting profit + economic profit
C) economic profit = accounting profit - implicit costs
D) economic profit = accounting profit - explicit costs
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
A budget surplus is
A. An excess of government spending over government revenues in a given time period. B. Used only in time of war. C. An excess of government revenues over government expenditures in a given time period. D. None of the choices are correct.
A market is said to be in disequilibrium if
A) it exhibits either a surplus or a shortage. B) the number of units that individuals are willing to buy exceeds the number of units they can afford. C) it is a market for an inferior good. D) none of the above
Nominal government purchases were $2226.2 billion in 2008 and rose to $2372.8 billion in 2009. Real government purchases were $1940.6 for 2008 and $1958.0 for 2009, where 2005 was the base year. Calculate the percent change in the chain-weight price index for government purchases (rounded to the nearest percentage point) from 2008 to 2009.
A. 2% B. 4% C. 8% D. 6%