According to the graph shown, if a firm is producing at Q2, and it is identical to others in the market:
A. profits are not being maximized.
B. firms will enter this market.
C. economic profits are zero.
D. firms will leave this market.
C. economic profits are zero.
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To calculate real GDP, ________.
A. multiply the quantities and prices of final goods and services produced in an economy in a year by their prices in that year and then sum the values B. multiply the quantities of all goods and service produced in an economy in a year by their price in that year and then total the result C. sum the quantities of all final goods and services produced in an economy in a year D. multiply the quantities of final goods and services produced in an economy in a year by their prices in a base year and then sum the values
The purpose of expansionary monetary policy is to increase ________.
A. real GDP B. the GDP gap C. interest rates D. the inflation rate
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
A significant increase in the price of a consumer good that has suddenly become much more scarce
What will be an ideal response?