In equilibrium,
A) income = planned expenditures.
B) unplanned inventory investment is zero.
C) Ep (planned expenditures) crosses the 45-degree income line.
D) all of the above.
D
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If the market price is lower than a perfectly competitive firm's average total cost, the firm will
A) immediately shut down. B) continue to produce if the price exceeds the average fixed cost. C) continue to produce if the price exceeds the average variable cost. D) shut down if the price exceeds the average fixed cost. E) shut down if the price is less than the average fixed cost.
Suppose checking deposits increase by $6,000 after all rounds of the money-creation process when the Fed buys $1,200 worth of U.S. government securities. This implies that the maximum value of the required reserve ratio is: a. 5
b. 0.75. c. 0.2. d. 1.2. e. 1.0.
Cyclical unemployment:
a. causes unemployment statistics to be understated. b. causes unemployment statistics to be overstated. c. occurs because of recessions. d. occurs because of technological innovations in production. e. only occurs with a zero inflation rate.
Two nations with differing comparative advantages will be able to consume more if each produces the good for which the opportunity cost is highest and trades for the good for which opportunity cost is lowest.
Answer the following statement true (T) or false (F)