Unemployment compensation payments:
a. fall during a recession and thus increase the severity of the recession.
b. rise during a recession and thus reduce the severity of the recession.
c. rise during a recession and thus increase the severity of the recession.
d. rise during inflationary episodes and thus reduce the severity of the inflation.
b
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A demand curve is described as perfectly elastic if
A. any quantity can be sold at a given price. B. the same quantity is sold regardless of price. C. neither price nor quantity demanded ever change. D. only price can change.
Under a fixed exchange rate system, if the real interest rate is at its lower bound and the central bank implements expansionary policy, real GDP will ________ and the output gap will ________
A) increase; increase B) decrease; decrease C) increase; decrease D) not change; not change
A partnership requires the agreement of most or all partners to any major decision.
Answer the following statement true (T) or false (F)
For a perfectly competitive firm, when MC is less than MR
A) the producer has an incentive to expand output. B) the producer has an incentive to decrease output. C) the producer has no incentive to change production. D) economic profits must be positive.