Consider a firm that is trying to determine how many hours to remain open in a day. How would the firm make this decision?
What will be an ideal response?
The firm would continue to stay open as long as the incremental, or marginal, benefit of staying open (say, the increased revenues) each extra hour exceeds (or at least equals) the incremental, or marginal, costs (e.g., electricity, wages, etc.) incurred from staying open that hour.
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Given a fixed upsloping AS curve, a rightward shift of the AD curve will ________.
A. increase both the price level and real output B. cause cost-push inflation C. increase the price level but not real output D. increase real output but not the price level
Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?
A) Output will increase. B) Short-run aggregate supply will shift to the left. C) Unemployment will decline. D) Prices will decline.
__________ the required reserve ratio will __________ the potential for multiple expansion
A) Raising; increase B) Lowering; decrease C) Raising; decrease D) None of the above.
Based on the graph showing the type of health insurance and coverage status in the United States in 2016, the smallest percentage of people are covered by ______ plans.
a. direct purchase
b. military health care
c. Medicare
d. employment-based