If the MPC is 0.6, then the MPS must be 0.4 for Macroland
Indicate whether the statement is true or false
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
In a perfectly contestable market in the long run, each firm
A. produces at the minimum point on its long-run average total cost curve. B. earns a profit below its opportunity cost of capital. C. avoids making capital expenditures. D. All of the responses are correct.
There is evidence that __________ were the main lobbyists behind passage of the Factory Acts which put restrictions on women and children working in early 19th century England
A) male workers B) female workers C) child-care advocates D) factory owners
Below, the graph on the left shows the short-run marginal cost curve for a typical firm selling in a perfectly competitive industry. The graph on the right shows current industry demand and supply.
If the firm's demand and marginal revenue curves were drawn in the left-hand graph, what would be the elasticity of demand?
A. -0.6 B. zero C. infinitely elastic D. -6 E. unitary