At small levels of output the gap between the ATC and the AVC curves is _______, and at larger levels of output the gap between the ATC and the AVC curves is _______.
Fill in the blank(s) with the appropriate word(s).
wide (large); narrow (small)
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Over the post-war era, poorer countries grew
A) faster. B) slower. C) stayed the same. D) grew faster, then grew slower. E) No general tendency can be found.
If the public has correct rational expectations and the Fed reduces the level of banking reserves, it would be expected to result in: a. a higher level of real output and a lower price level. b. a lower price level but no change in real output
c. a higher price level and a reduced level of real output. d. a higher price level but no change in real output.
If a bank’s assets are $500 million and its liabilities are $380 million, then its net worth (bank capital) is ____________________. If the bank’s assets then rise by 6 percent at the same time that its liabilities rise by 5 percent, the percentage change in the bank’s net worth will be approximately _______________ percent.
A. $440 million; 10.2 B. $120 million; 1.2 C. $100 million; 11.2 D. $120 million; 9.2
When new firms are encouraged to enter a monopolistically competitive market
A) some existing firms must be earning economic profits. B) they do so because there is insufficient product differentiation. C) the demand curve facing an existing firm shifts to the right. D) the marginal cost curve facing an existing firm shifts downwards.