In the above figure, point B represents
A) a recessionary gap.
B) a full-employment equilibrium.
C) an inflationary gap.
D) a decrease in aggregate demand.
B
You might also like to view...
In an oligopsony market:
A) there are many buyers and sellers. B) there are many buyers and a single seller. C) there is a single buyer and many sellers. D) there are a few buyers and many sellers. E) there are a few buyers and a few sellers.
According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level
a. True b. False Indicate whether the statement is true or false
Blanket standards on imports usually address issues affecting:
A. foreign production practices. B. domestic consumers. C. domestic producers. D. They can be used to address any of these.
A monopolist earns $50 million annually and will maintain that level of profit indefinitely, provided no other firm enters the market. If another firm successfully enters the market, the incumbent's profits remain at $50 million the first period, but fall to $25 million annually thereafter. The opportunity cost of funds is 10 percent, and profits in each period are realized at the beginning of each period. If the monopolist can earn $27 million indefinitely by limit pricing, should it do so?
A. No, it will earn $297 million in present value if it does this. B. Yes, it will earn $297 million in present value if it does this. C. No, it will earn $270 million in present value if it does this. D. Yes, it will earn $270 million in present value if it does this.