Which of the following best describes a firm that is showing economic profits?
a. The firm’s revenue is adequate to cover its explicit costs.
b. The payments the firm has made are greater than its implicit costs.
c. The firm has taken in enough money to cover its total opportunity costs.
d. The per-unit cost of production for the firm is at its minimum.
c. The firm has taken in enough money to cover its total opportunity costs.
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An increase in real GDP leads to
A) a movement upward along the demand for money curve but no shift of the curve. B) a movement downward along the demand for money curve but no shift of the curve. C) neither a shift in the demand for money curve nor a movement along the curve. D) a leftward shift in the demand for money curve. E) a rightward shift in the demand for money curve.
National income (NI) is the total income earned by resource owners, including wages, rents, interest, and profits
a. True b. False Indicate whether the statement is true or false
The total lag for fiscal policy tends to be shorter than the total lag for monetary policy
a. True b. False Indicate whether the statement is true or false
If the structural unemployment rate is 3 percent, the frictional unemployment rate is 2 percent, and the current unemployment rate is 6 percent, then the economy is in a recessionary gap
Indicate whether the statement is true or false