If the price of a good lies between the zero-profit point and the shutdown point, a perfectly competitive firm should shut down immediately
a. True
b. False
Indicate whether the statement is true or false
False
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In the liquidity trap a small change in interest rates produces ________ change in the quantity of money demanded
A) a small B) no C) a proportionate D) a very large
In long-run equilibrium, a monopolistically competitive firm will produce
a. at the minimum average cost b. at full capacity c. along the downward-sloping portion of its ATC curve d. along the upward-sloping portion of its ATC curve e. at the minimum of marginal cost
In a market economy, most of what we consume is obtained by
a. a command system b. greed c. altruism d. exchange e. central planning
The end of the housing boom of the early 2000s can be illustrated by a decline in aggregate demand.
Answer the following statement true (T) or false (F)