The term excess capacity refers to the fact that a firm operates on the upward-sloping portion of its average-total-cost curve
a. True
b. False
Indicate whether the statement is true or false
False
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If the Fed increases the inflation rate in the short run before people's expected inflation changes, what occurs? What happens in the long run?
What will be an ideal response?
The total value of production from Ford's manufacturing plant in Cologne, Germany would be included in Germany's gross national product
Indicate whether the statement is true or false
Inflation may impose little, if any, cost on the economy, if ________
A) laws against excessive price increases are enforced effectively B) the government subsidizes menu costs C) price increases are fully anticipated D) the Fisher effect holds true E) the rate of price increase is so slow that people do not feel compelled to alter their behavior
What are signals? How do profits function as signals?
What will be an ideal response?