Total surplus is at its minimum when the market operates at the equilibrium price and quantity
a. True
b. False
Indicate whether the statement is true or false
False
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Each of the following factors determine the value of a forecast except which one?
A) the accuracy of the forecast B) the slope of the marginal cost curve C) the variability of the firm's demand D) the slope of the average fixed cost curve
In the long run there are ________ price level surprises, meaning that the actual price level ________ the anticipated price level
a. no; exceeds b. many; is below c. many; equals d. no; equals
When the federal government incurs a budget deficit, it will
A) mint more coins and spend them. B) create money out of thin air. C) impose a special tax on all income earners. D) borrow money from the Federal Reserve System by issuing securities. E) borrow money from the public by issuing government securities.
The portion of the Obama stimulus package that provided unemployment benefits for longer than the usual 26 weeks is best thought of as
A. discretionary (and contractionary) fiscal policy. B. discretionary (and expansionary) fiscal policy. C. monetary policy. D. nondiscretionary fiscal policy.