A firm will shut down in the long-run if
a. P>AVC
b. P
d. P>ATC
b
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If the market clearing price of computer tablets falls from $400 to $300, and the market clearing output increases from 5 million to 7 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
What kinds of economic conditions indicate that the Fed should expand the money supply?
The capital-output ratio is measured by dividing
a. the capital stock by labor b. output by the capital stock c. the capital stock by GDP d. the change in labor by GDP e. GDP by labor
A marginal propensity to save (MPS) of 0.25 means a $50 million tax cut ultimately
A. Increases spending by $400 million. B. Increases spending by $200 million. C. Increases spending by $150 million. D. Reduces spending by $50 million.