Economic profit is equal to
A. total revenue minus the explicit and implicit costs of production.
B. accounting profit plus the explicit and implicit costs of production.
C. total revenue minus the cost of raw materials.
D. total revenue minus total fixed cost.
Answer: A
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According to neo-Keynesians, the long-run Phillips curve is essentially horizontal
Indicate whether the statement is true or false
When the economy has substantial additional saving, deficit spending will have a large "crowding out" effect
a. True b. False Indicate whether the statement is true or false
Suppose that an economy is currently experiencing 10 percent unemployment and 15 percent inflation. If in the process of bringing inflation down by 2 percentage points, real GDP falls by 6 percent for a year, the sacrifice ratio is
a. 5. b. 2. c. 12. d. None of the above is correct.
Which of the following will shift the consumption function upward?
A. a tax increase B. expectations of inflation C. higher disposable income D. lower wealth holdings