In the short run, a firm might choose to produce rather than shut down even if its market price is less than its average total cost of production
Indicate whether the statement is true or false
TRUE
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According to Keynes, the private sector (by itself)
A) can always move the economy out of a recessionary gap in a timely manner. B) cannot always move the economy out of a recessionary gap in a timely manner. C) can never move the economy out of a recessionary gap. D) can only move the economy out of a recessionary gap if the SRAS curve drops. E) can only move the economy out of a recessionary gap if the SRAS curve rises.
The main purpose of the Laffer curve is to crudely suggest
A. how government can increase tax revenues by increasing tax rates. B. that a tax cut will lead to an increase in GDP. C. the disincentive effects of high marginal tax rates. D. the tax rate which will yield maximum revenue for the government.
If we know average total cost and the amount of output, then we can always calculate total cost by
A) adding average total cost and the amount of output. B) subtracting the amount of output from average total cost. C) multiplying average total cost by the amount of output. D) dividing average total cost by the amount of output.
Describe the major sources of tax revenue and expenditures for the federal government.
What will be an ideal response?