If a monopolistically competitive firm decides that its cost and revenue data indicate that it should not shut down, it will end up producing where
a. MR > AVC
b. MR > ATC
c. MR > MC
d. MR = P = ATC = MC
e. MR = MC
E
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Which of the following statements is true?
A) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward. B) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward. C) An increase in the money wage rate shifts the AS curve rightward. D) A fall in the price level shifts the AS curve leftward. E) An increase in the money wage rate increases potential GDP.
?A standard linear model which is supposed to measure a causal relationship is called a structural equation.
Answer the following statement true (T) or false (F)
It is ________ for a corn producer in a perfectly competitive corn industry to make excess profits because entry into the corn industry is free.
A. difficult B. likely C. very easy D. expected
In the 1990s, inflation in the United States was
a. very close to zero. b. about 3 percent per year. c. about 6 percent per year. d. commonly referred to as "public enemy number one.".