A firm operating in a competitive market will stay in business in the short run so long as the market price exceeds the firm's average total cost; otherwise, the firm will shut down
a. True
b. False
Indicate whether the statement is true or false
False
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Briefly review the history of antitrust legislation in the United States
Which of the following is an automatic stabilizer that reduces tax receipts during a recession?
A. Medicaid. B. Corporate and individual income taxes. C. Indexed retirement and Social Security benefits. D. Welfare benefits.
Other things equal, a decrease in spending on new homes will?
a. increase aggregate demand. b. decrease aggregate demand. c. increase short-run aggregate supply. d. decrease short-run aggregate supply. e. decrease long-run aggregate supply.
Referring to Figure 18.3, the effect of a decrease in Japanese interest rates is represented by a movement from point:
A. b to a. B. a to b. C. b to c. D. a to d.