Firms maximize their profits by producing the output level where MR = MC.
Answer the following statement true (T) or false (F)
True
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Suppose the labor supply equation is L = (W/3) - (4/3). The wage rate is initially 5. What is the amount of producer surplus here?
What will be an ideal response?
In the money and credit expansion process, the total change in checkable deposits is equal to the initial change in excess reserves _____
a. multiplied by the required reserve ratio b. plus the change in required reserves c. divided by the reciprocal of the required reserve ratio d. multiplied by the reciprocal of the required reserve ratio e. divided by the change in required reserves
The secondary effects of an economic action refer to the
What will be an ideal response?
The presence of wage and price controls in the United States during WWII:
A. helped to reduce the inflationary pressures created by contractionary fiscal policy. B. had little impact on inflation because of the Depression. C. helped to reduce the inflationary pressures created by expansionary fiscal policy. D. was not successful in reducing inflation during this period.