When real GDP is less than potential GDP, there is ________ which leads the unemployment rate to ________
A) a recessionary gap; rise
B) a recessionary gap; decline
C) an inflationary gap; rise
D) an inflationary gap; remain at the natural level
E) a recessionary gap; remain at the natural level
A
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Refer to the graph below. The solid kinked demand curve would most likely be observed by a firm operating within
a. perfect competition.
b. pure monopoly.
c. an oligopoly.
d. monopolistic competition.
Oligopoly occurs when
a. a few firms sell many different products. b. a few firms sell to a few large buyers. c. many firms dominate a single market. d. a few firms dominate a single market.
Based on the graph above, the firm is earning:
A. zero economic profits. B. We can say nothing about this firm's profit or loss situation. C. zero normal profits. D. zero accounting profits.
National defense is an example of an externality.
Answer the following statement true (T) or false (F)