The expenditure category of GDP that fluctuates the most over time is investment
a. True
b. False
Indicate whether the statement is true or false
True
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Firms in a monopolistically competitive market structure maximize their profit by producing an output where:
a. price equals average total cost. b. marginal cost equals average total cost. c. marginal cost equals price. d. marginal revenue equals marginal cost.
Bankers supported the Federal Reserve Board's Regulation Q because:
a. it allowed them to charge lower interest rates on loans. b. it protected them from money market volatilities. c. it increased the demand for loanable funds in the market. d. it allowed them to borrow at a low rate of interest and lend out at a high rate of interest.
Assuming QF is the full employment equilibrium then a shift from AD1 to AD2 in Figure 11.2 will
A. Eliminate the GDP gap. B. Cause significant inflation. C. Worsen the existing unemployment problem. D. Reduce, but not close, the GDP gap.
Exhibit 7-18 A typical firm in a perfectly competitive market
?
As shown in Exhibit 7-18, the perfectly competitive firm is in long-run equilibrium at a price of:
A. $100. B. $200. C. $300. D. $400.