Figure 7.6 shows prices, demands, and cost data for the only restaurant in a small town. Compared to the profit under the single price policy, how much additional profit does the restaurant earn under the senior discount policy of a $7 senior price and a $10 non-senior price?
A. $920
B. $580
C. $300
D. $280
Answer: B
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In the above figure, if the relevant aggregate demand curve is AD2, what type of gap exists and how large is it?
A) inflationary gap of $1 trillion B) recessionary gap of $500 billion C) inflationary gap of $500 billion D) recessionary gap of $1 trillion
The table above gives some of the accounts of the United States in 2020
a) What is the private sector balance? b) What is the government sector balance? c) What is net exports?
When the cost of borrowing funds which is stated on a loan is adjusted for the effects of inflation, the resulting interest rate is called the
A) prime interest rate. B) nominal interest rate. C) real interest rate. D) core PCE interest rate.
The majority of federal government spending on income transfers would be classified as welfare
Indicate whether the statement is true or false