If a firm decreases production, then its:
A. variable costs rise.
B. total costs increase.
C. fixed costs stay the same.
D. All of these are true.
Answer: C
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The after-tax income received by the household sector is known as ________
A) disposable income B) retained earnings C) net national product per capita D) Gross Domestic Product
On the eve of the American Revolution, most colonials produced agricultural goods. The war boosted profits for many farmers
Indicate whether the statement is true or false
Eric lost his job because a recession caused his employer's sales to fall. This is an example of:
a. involuntary unemployment. b. frictional unemployment. c. structural unemployment. d. cyclical unemployment.
An inflationary output gap is defined to be when the current level of output is:
A. below full employment GDP. B. above full employment GDP. C. equivalent to full employment GDP. D. high enough to cause an unexpected amount of inflation.