The MR = MC rule is used to analyze:
A) only monopoly profit maximization.
B) only perfect competition profit maximization.
C) both monopoly and perfect competition profit maximization.
D) This rule is not used to analyze profit.
Answer: C) both monopoly and perfect competition profit maximization.
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Because the income tax structure is progressive, the amount of taxes paid is a _____
a. constant fraction of income throughout the business cycle b. larger fraction of income in expansions than in contractions c. smaller fraction of income in expansions than in contractions d. decreasing function of income in both expansions and contractions e. constant amount at all levels of output and income
The price of a coupon bond will increase as the:
A. term to maturity is shorter. B. face value decreases. C. yield increases. D. coupon payments increase.
If nominal Gross Domestic Product (GDP) in 2020 was $3,000 billion, and the price level index was 330 (2000 = 100), then real Gross Domestic Product (GDP) in terms of the price level in 2020 was about
A. $105 billion. B. $537 billion. C. $4,220 billion. D. $909 billion.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline