Because of automatic stabilizers, in recessions the government budget deficit ________, while in expansions the deficit ________.
A. falls; rises
B. rises; falls
C. falls; falls
D. rises; rises
Answer: B
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Refer to Figure 7.1. At what level of output does average total cost equal marginal cost?
A) Q2 B) Q3 C) Q4 D) Q5 E) none of the above
In the long run, any firm may enter or leave a perfectly competitive market
a. True b. False Indicate whether the statement is true or false
Economists sometimes use the term "countercyclical"
What will be an ideal response?What will be an ideal response?
Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-Hours Per DayOutput Per Day0014048091201516023200 When the firm uses 9 employee-hours per day, its total cost each day is:
A. $126. B. $64. C. $176. D. $56.