Geo Sports, a football gear manufacturer, is considering expanding its factory. Which of the following describes the best conditions for a factory expansion?
a. The long-run average total cost curve is a horizontal line.
b. The slope of the long-run average total cost curve is positive.
c. The slope of the long-run average total cost curve is negative.
d. The slope of the long-run average total cost curve is zero.
c
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In the long run, the inflation rate
A) must be equal to the natural unemployment rate. B) can take on any value. C) is equal to the natural inflation rate. D) is zero. E) cannot be negative.
Suppose that the Federal Reserve Open Market Committee adheres to the ideas expressed by ________
If the economy moves into a recession, the Fed would recommend that the federal funds target rate decrease as long as the inflation rate did not rise above the publicly announced goal for inflation. A) the Taylor Rule B) the gold standard C) the monetarist school of thought D) inflation targeting
If production creates a negative externality, social welfare can be increased through
a. antitrust law b. subsidization c. taxation d. free market policies e. allocative efficiency
ItemBillions of DollarsCheckable Deposits$2,000Small Time Deposits350Currency Held by the Public80Savings Deposits, Including Money-Market Deposit Accounts1,300Money-Market Mutual Funds Held by Individuals600Money-Market Mutual Funds Held by Businesses700Refer to the above table. The size of the M1 money supply is:
A. $2,080. B. $2,220. C. $1,940. D. $2,730.