A monopolistic competitive firm in the long run sets price equal to the minimum point on the long-run average cost curve
a. True
b. False
Indicate whether the statement is true or false
False
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If reserves in the banking system increase by $100, then checkable deposits will increase by $2,000 in the simple model of deposit creation when the required reserve ratio is
A) 0.01. B) 0.05. C) 0.10. D) 0.20.
The total earnings of a worker are represented by E = 150 + $12(24 ? L), where E is earnings and L is the number of hours of leisure. How much will the worker earn if he takes 16 hours of leisure per day?
A. $278 B. $342 C. $96 D. $246
The "net export effect"
What will be an ideal response?
All of the following are possible explanations for the increase in U.S. government budget deficits as a percentage of GDP since 2000 EXCEPT
A. increases in government spending. B. increases in payments for entitlements. C. decreases in tax rates. D. increases in tax revenues.