If ______ then AVC is falling.
a. MC > AVC
b. MC < AVC
c. MC > AFC
d. MC < AFC
b. MC < AVC
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Why are firms in monopolistic competition unable to earn an economic profit in the long run?
What will be an ideal response?
Why is the money multiplier smaller than the simple deposit multiplier?
What will be an ideal response?
Those living in the poorest quartile of countries would like to emigrate because:
A. earnings are higher for the same skill level in richer countries. B. the opportunities to gain more education are higher in richer countries. C. the cost of living is lower in richer countries. D. All of these statements are true.
If the Fed shifts to a more restrictive monetary policy in order to help control inflation, the policy shift will generally
a. stimulate aggregate demand and real output as soon as the policy is instituted. b. reduce aggregate demand immediately and quickly bring the inflation under control. c. reduce aggregate demand and help bring the inflation under control, but the primary effects may not be felt for several months (or quarters). d. lower real interest rates in the short run, but in the long run, real interest rates will rise.