Which of the following statements is true?
a. Economic profit equals accounting profit minus implicit costs.
b. The short run is any period of time in which there is at least one fixed input.
c. A fixed input is any resource for which the quantity cannot change during the period under consideration.
d. In the long run there are no fixed costs.
e. All of these.
e
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Health insurance companies impose deductibles on policies and co-payments on claims to reduce the problem of adverse selection
Indicate whether the statement is true or false
Why are aggregate demand shocks not a good explanation of business cycles in the New Keynesian model?
A) The wage is not constant. B) Employment does not fluctuate. C) Prices in the model are procyclical. D) Consumption is not procyclical.
A merger between Bank of America and Citibank would be a ____ merger.
Fill in the blank(s) with the appropriate word(s).
The consumption function relates
A. real disposable incomes earned by households with the level of unexpected consumption spending. B. planned household consumption to real disposable income. C. a household's consumption to its wealth. D. planned household consumption and real interest rates.