Suppose the economy is experiencing a recessionary gap. In the long run, if aggregate demand does not change, the following events happen: the money wage rate ________, unemployment ________, and the price level ________
A) falls; rises; falls
B) falls; falls; falls
C) rises; rises; rises
D) rises; falls; rises
B
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A firm should shut down if its total revenue is less than its ________ even when the firm produces the level of output at which price equals marginal cost.
A. marginal cost. B. fixed cost. C. total cost. D. variable cost.
A flour mill holding exclusive contracts to 95% of the wheat in a large geographic area may operate as a flour-producing monopoly locally because
A) the mill has a very inelastic supply curve. B) the mill is a natural monopoly. C) the mill controls a key input. D) the government will declare it a monopoly.
Which of these partly accounts for the long-term growth in production in the U.S. economy?
a. An increase in government spending b. An increase in the availability of resources c. A reduction in federal taxes d. A gradual but consistent increase in the price level e. A general optimism about the future and the pioneering spirit of America
Consumption + the change in net worth =
A. saving. B. total assets. C. economic income. D. depreciation.