Automatic stabilizers lead to:
a. a decrease in taxes collected by the government during an economic expansion.
b. a decrease in unemployment compensation during a recession
c. Congressional action on changing the tax codes.
d. none of the above
d
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Acme is a perfectly competitive firm. It has the cost schedules given in the above table and has a fixed cost of $12.00. The price of Acme's product is $4.00
What is Acme's most profitable amount of output? What is Acme's total economic profit or loss?
Figure 7-15
For a firm at equilibrium, at point A in Figure 7-15
a.
the price of labor is high relative to the price of machines.
b.
the MPP of labor is greater than the MPP of machines.
c.
the MPP of labor is less than at point B.
d.
output is higher than at point B.
If the economy is not in a long-run equilibrium and other things are equal, then prices will eventually adjust to bring the economy to a long-run equilibrium.
Answer the following statement true (T) or false (F)
When the nominal exchange rate changes from 10 pesos per dollar to 8 pesos per dollar, the dollar has:
A. depreciated. B. appreciated. C. become overvalued. D. become undervalued.