If a monopolist lowers its price from $45 to $42 in order to increase its sales volume, marginal revenue
a. equals $45.
b. equals $42.
c. is less than $42.
d. is between $45 and $42.
c. is less than $42.
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Does the gross domestic product account measure the market value of all goods and services?
A) No, because that would include double-counting. B) Yes, because the data is readily available. C) Yes, except for illegally exchanged goods and services. D) Yes, otherwise the gross domestic product accounting system is not a reliable indicator of economic activity.
When economists state that money is neutral in the long run, they mean that in the long run,
A) fluctuations in the money supply are equally likely to lead to recessions as to expansions. B) changes in the money supply have the same impact on the rich as they do on the poor. C) the level of output is independent of the nominal money supply. D) the price level is independent of the nominal money supply.
Why don't governments avoid budget deficits under all circumstances?
Seemingly positive disagreements often have normative origins
a. True b. False