If unplanned investment is positive, firms will ________ production and output will ________

A) cut; rise
B) cut; fall
C) increase; rise
D) increase; fall


B

Economics

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When government outlays exceed tax revenues, the situation is called a budget

A) surplus. B) deficit. C) with a negative balance. D) with no balance. E) debt.

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If a perfectly competitive firm finds that it is producing an amount of output such that MR > MC and P > AVC, it will

A) leave the industry. B) decrease its output. C) increase its output. D) not change its behavior.

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Both the supply and demand curves can shift due to changes in income

a. True b. False

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Refer to Exhibit 6-2. How many unemployed persons are there in year 3?

a. 50 million b. 100 million c. 150 million d. 350 million e. 400 million

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