An inflationary gap refers to the gap between real GDP and potential GDP when the level of output is below the level of potential GDP
a. True
b. False
Indicate whether the statement is true or false
False
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In the absence of recurring fixed costs, a monopolist will always produce a positive output quantity.
Answer the following statement true (T) or false (F)
Which of the following statements about a perfectly competitive market are TRUE?
I. The perfectly competitive industry faces an upward sloping labor supply curve. II. The individual firm in a perfectly competitive industry faces a perfectly elastic labor supply curve. A) I only B) II only C) both I and II D) neither I nor II
In the short run, producers derive surplus from market exchange because
a. total revenue is greater than the minimum they would require to sell the good b. total revenue is equal to the minimum amount they would require to sell the good c. total revenue is less than the minimum amount they would require to sell the good d. marginal revenue equals average revenue e. they can rob consumers of most of their consumer surplus
The cost of owning a government bond is ________, and the benefit of owning one is ________.
A. interest earned; that it is not very liquid B. that it is as liquid as cash; interest earned C. that it is highly liquid;interest charged D. interest charged; that it is not very liquid