Approaching a business cycle peak, actual real GDP ________ natural real GDP, which causes inflation to ________
A) exceeds, remain constant
B) exceeds, accelerate
C) is less than, decelerate
D) equals, accelerate
E) equals, remain constant
B
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A pharmaceutical company unexpectedly announces that it just developed an important new drug. This news should
a. raise the price of the corporation's stock; if it does not the stock is overvalued. b. raise the price of the corporation's stock; if it does not the stock is undervalued. c. reduce the price of the corporation's stock; if it does not the stock is overvalued. d. reduce the price of the corporation's stock; if it does not the stock is undervalued.
Which is always TRUE at a firm's profit-maximizing rate of production?
A) Total Revenue = Total Costs B) The total revenue curve lies below the total cost curve. C) Marginal Revenue > Marginal Cost D) Marginal Revenue = Marginal Cost
Which of the following is a positive economic statement?
A) The standard of living in the United States is too low. B) If the price of beef falls, a larger quantity of it will be bought. C) The government should implement a national consumption tax. D) The U.S. government should increase regulations on the banking industry.
One thing oligopolists must do in order to determine their optimal strategy is
A. produce a unique product which has no close substitutes. B. anticipate the reaction of their customers to their strategy. C. ignore the reaction of their customers to their strategy. D. ignore the reaction of their rivals to their strategy.