An inflationary gap is occurs when
A) real GDP is less than potential GDP.
B) real GDP exceeds potential GDP.
C) real GDP equals potential GDP.
D) the economy is at full employment.
B
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Eurobank spreads exceed U.S. spreads
Indicate whether the statement is true or false
If price is between AVC and ATC, the best and most practical thing for a perfectly competitive firm to do is
A) raise prices. B) lower prices to gain revenue from extra volume. C) shut down immediately, but not liquidate the business. D) shut down immediately and liquidate the business. E) continue operating, but plan to go out of business.
For conducting a marginal analysis, individuals compare ____________
a. marginal utility and marginal productivity. b. marginal interest and marginal price. c. marginal wage and marginal yield. d. marginal benefit and marginal cost.
Businesses produce goods and services and sell them to households and governments. The market where this interaction takes place is called the goods market.
Answer the following statement true (T) or false (F)