Refer to the above figure. The profit maximizing price for a monopolistic competitor is
A. P1.
B. P2.
C. P3.
D. P4.
Answer: B
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If the GDP deflator is less than 100, which will be higher: nominal GDP or real GDP? Why?
What will be an ideal response?
In addition to making the automatic stabilizers more effective, discretionary fiscal policy could fight a recession by (1) _________; (2) __________; and (3) _______.
Fill in the blank(s) with the appropriate word(s).
In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, then an open market ________ the supply of reserves, raising the federal funds interest rate, everything else held constant
A) sale decreases B) sale increases C) purchase increases D) purchase decreases
Fixed costs are
a. costs that vary with output b. always equal to marginal costs c. costs that do not vary with output d. equal to total costs