In the short run, a firm should shut down when
A) P < AVC.
B) P > MC.
C) MR > MC.
D) MR = ATC.
A
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If there are no changes in inflation expectations, a sale of government bonds by the Fed in the open market will cause ________
A) both the federal funds rate and long-run expected real interest rate to rise B) both the federal funds rate and long-run expected real interest rate to fall C) the federal funds rate to fall and the long-run expected real interest rate to rise D) the federal funds rate to rise and the long-run expected real interest rate to fall
In a monopoly,
A) marginal revenue is greater than price. B) marginal revenue is less than price. C) the demand curve is horizontal. D) marginal revenue and price are equal
Micromania has recently experienced a slowdown in its labor productivity growth relative to its international trading partners. Micromania can expect, if this trend continues, the currency of its trading partners to be devalued
Indicate whether the statement is true or false
Suppose your consumption function shifts downward. This can be caused by if the consumption function shifts downward, which of the following is the most likely cause?
A. An increase to the price level B. An increase to your disposable income C. A decrease to the interest rate D. A decrease in housing prices