Which of the following is true for both perfectly competitive and monopolistically competitive firms in the long run?
A) P = MC.
B) MC = ATC.
C) P > MR.
D) Profit equals zero.
D
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Between 1981 and 1986, as the federal budget deficit increased,
a. consumption spending fell. b. investment spending was crowded out. c. net exports increased. d. net exports were crowded out.
Monopolists can achieve any level of profit they desire because they have unlimited market power
a. True b. False Indicate whether the statement is true or false
A shift in supply is defined as a change in
A. The supply curve because of a change in a determinant of supply. B. Quantity supplied because of a change in price. C. Price. D. Equilibrium quantity.
Refer to the above diagram, in which Qf is the full-employment output. If the economy's current aggregate demand curve is AD3, it is experiencing:
A. a negative GDP gap. B. a recession. C. a positive GDP gap. D. cost-push inflation.