Which of the following is true of a recessionary gap?
What will be an ideal response?
In the long run, this gap closes when resource suppliers negotiate lower resource payments.
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A decrease in the price of a good that is measured on the horizontal axis will cause the budget constraint to rotate outward (with a new larger intercept on the horizontal axis)
Indicate whether the statement is true or false
If the Shell and Mobil oil companies merge, what is this called?
a. concentration merger b. diversified merger c. horizontal merger d. vertical merger e. conglomerate merger
Asymmetric information may cause
A. used goods in excellent condition to not be sold. B. used goods in poor condition to not be offered for sale. C. sellers with goods in excellent condition to accept prices below their willingness to sell. D. sellers with goods in excellent condition to ship the goods to other markets.
Under the average-cost pricing policy, a regulated monopolist is guaranteed a normal economic profit even if there is a change in its cost of production.
Answer the following statement true (T) or false (F)