Here's some unhappy news for Canadians: Canada's real GDP declined steadily for the first half of 2000 . so that Canada was, at least during that period of time, and according to economists, in a
a. depression
b. recovery from recession
c. recession
d. peak or prosperity phase of its business cycle
e. deflation
C
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Suppose a profit-maximizing firm in a perfectly competitive market is earning an economic profit of $1,345. If the firm's fixed cost increases from $200 to $300, the firm will:
A. earn a smaller profit. B. reduce its output. C. earn a greater profit. D. raise its price.
What is the money multiplier and what affects its size?
What will be an ideal response?
In 1981-1983, the world economy suffered a steep recession. Naturally, the fall in industrial countries' aggregate demand had a direct negative impact on the developing countries
What other mechanism was an even more important contributor to this event? A) the immediate steep inflation that followed the recession B) the dollar's sharp depreciation in the foreign exchange market C) the increase in primary commodity prices, increasing terms of trade in many poor countries D) the collapse in primary commodity prices and the immediate, large rise in the interest burden that debtors had to pay E) the influx of defaulting credit
Following a recession businesses are likely to be ________ and thus ________ the user cost of capital
A) optimistic; overestimate B) pessimistic; overestimate C) optimistic; underestimate D) pessimistic; underestimate