If there is currently a recessionary gap:
a. The price level will tend to rise.
b. Real output will tend to fall
c. Both a. and b. will occur.
d. None of the above will occur.
d
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Explain what type of unemployment changes with the business cycle and how it changes
What will be an ideal response?
If price is above average total costs, the firm
A) is earning positive profits. B) is earning negative profits. C) is making a normal rate of return on its capital investment. D) may be earning a positive or negative profit depending upon costs.
In international trade, all payments and gifts that are related to the purchase or sale of both goods and services are referred to as the
A) current account. B) financial account. C) labor account. D) official reserve transactions account.
Refer to the below tables. If the firm sells 3 units of output, marginal revenue will be:
Assume that the short-run cost and demand data given in the tables below confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion.
A. -$5
B. $35
C. $135
D. $165