If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing it, the firm
A) added more to total costs than it added to total revenue.
B) added more to total revenue than it added to total cost.
C) has minimized its losses.
D) is maximizing marginal profit.
B
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
Investment spending increases during ________, and decreases during ________
A) a deflation; an inflation B) a recession; an expansion C) an expansion; a recession D) a recession; a depression
The slope of the consumption function can be determined by dividing the change in
a. real consumption spending by the change in real disposable income b. nominal spending by the change in nominal disposable income c. real disposable income by the change in real consumption spending d. nominal disposable income by the change in nominal consumption spending e. total consumption spending by the change in autonomous consumption spending
The money supply is 4,000 . nominal GDP is 8,000 . and real GDP is 2,000 . Which of the following is 2?
a. the price level and velocity. b. the price level but not velocity. c. velocity but not the price level. d. neither the price level nor velocity.