A firm should always shut down if its revenue is
A) declining.
B) less than its average fixed costs.
C) less than its total costs.
D) less than its avoidable costs.
D
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Suppose the IS curve shifts back and forth. With a flat LM curve you get __________ variability in the output and __________ variability in the interest rate than you get with a steep LM curve
A) more; more B) more; less C) less; more D) less; less
Which of these statements correctly explains the shape of the aggregate demand curve? a. As prices fall, nominal income rises and so does the demand for real goods and services
b. Rising prices reduce people's wealth and thereby decrease spending. c. With falling prices, government decides to spend less to increase the price level. d. Businesses increase investment spending in response to higher interest rates caused by inflation. e. As prices fall, domestically produced goods become more expensive relative to foreign goods, resulting in an increase in production.
Classical economists believe that an increase in the money supply will lead to
a. a decrease in nominal GDP b. a decrease in real GDP c. a decrease in the price level d. an increase in nominal GDP e. an increase in real GDP
Only paid workers are included in the Bureau of Labor Statistics' "employed" category
a. True b. False Indicate whether the statement is true or false