In the long run, a perfectly competitive firm is expected to generate either an economic profit or an economic loss
a. True
b. False
Indicate whether the statement is true or false
False
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Many economists argue that the sharp reduction in U.S. net exports in the mid 1980s was due to
A) expansionary U.S. monetary policy. B) contractionary U.S. monetary policy. C) expansionary U.S. fiscal policy. D) contractionary U.S. fiscal policy.
________ is an industry with a single firm in which the entry of new firms is blocked.
A. An oligopoly B. A monopoly C. Monopolistic competition D. Perfect competition
Given the demand curve in Figure 5-24, explain how consumer’s surplus is calculated.
What will be an ideal response?
The most common type of macroeconomic imbalance is overly expansionary fiscal policies that create large government budget deficits, often financed by a high growth rate of the money supply
Indicate whether the statement is true or false