Refer to the information provided in Figure 26.1 below to answer the question(s) that follow.
Figure 26.1Refer to Figure 26.1. This economy is most likely experiencing excess capacity at aggregate output levels
A. below $500 billion.
B. above $1,500 billion.
C. between $500 billion and $1,000 billion.
D. between $1,000 billion and $1,500 billion.
Answer: A
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In April 2014, the money price of a carton of milk was $2.01 and the money price of gallon of gasoline was $3.63 . Calculate the relative price of a gallon of gasoline in terms of milk
What will be an ideal response?
The entry of AT&T and GM into the credit card business is an indication of
A) government's efforts to deregulate the provision of financial services. B) the rising profitability of credit card operations. C) the reduction in costs of credit card operations since 1990. D) the sale of unprofitable operations by Bank of America and Citicorp.
If the Fed decreases the discount? rate, relative to the federal funds? rate, then this
a. would cause the money supply to decrease. b. would cause the required reserve ratio to increase. c. would decrease the cost of funds for institutions borrowing from the Fed. d. would increase the cost of funds for institutions borrowing from the Fed.
Consider a Cournot duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi(Qi) = 2Qi. Based on this information, firm 1 and 2's marginal revenue functions are:
A. MR1(Q1,Q2) = 24.5 ? 0.5Q2 and MR2(Q1,Q2) = 24.5 ? 0.5Q1. B. MR1(Q1,Q2) = 100 ? 4Q1 ? 2Q2 and MR2(Q1,Q2) = 100 ? 2Q1 ? 4Q2. C. MR1(Q1,Q2) = 100 ? 2Q1 ? 4Q2 and MR2(Q1,Q2) = 100 ? 4Q1 ? 2Q2. D. MR1(Q1,Q2) = 100 ? 2Q1 ? Q2 and MR2(Q1,Q2) = 100 ? Q1 ? 2Q2.