The two phases of the business cycle are
a. high economic growth and low economic growth
b. expansion and contraction
c. expansion and depression
d. high inflation and low inflation
e. potential economic growth and actual economic growth
B
You might also like to view...
If aggregate demand is stable and there is economic growth, the economy will experience
A) secular depreciation. B) secular decline. C) secular deflation. D) secular degeneration.
Assuming the monopolist shown in the graph adjusts output to maximize profits, it is
A. earning profits in the short-run.
B. having losses in the short-run.
C. earning profits in the long-run.
D. earning profits and could be in the short-run or long-run.
The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost.
If the producers of Good X form a cartel and set a monopoly price for the output, the price per unit would be ________ and the cartel profits (before subtracting any fixed costs) would be
A. $1,000; $40 billion. B. $500; $10 billion. C. $600; $90 billion. D. $1,000; $60 billion.
Which of the following is always TRUE of rational behavior?
A. It always yields the best possible outcome for all individuals. B. It never involves taking into account the interests of others. C. It always entails pursuing one's own best interest. D. It never involves the pursuit of greedy self-interest.