At the peak of a business cycle, employment and GDP are
a. at their lowest
b. at their highest
c. rising
d. falling
e. it is impossible to state for certain what is happening to employment and GDP
B
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Which of the following statements is correct?
a. Assuming that explicit costs are positive, economic profit is greater than accounting profit. b. Assuming that implicit costs are positive, accounting profit is greater than economic profit. c. Assuming that explicit costs are positive, accounting profit is equal to economic profit. d. Assuming that implicit costs are positive, economic profit is positive.
If the equation y = -10 + 2.5x was plotted:
A. the vertical intercept would be -10. B. the slope would be -7.5. C. it would graph as a downsloping line. D. the slope would be -10.
An increase in the reserve requirement:
A. increases the money supply, which leads to increased interest rates and a decrease in GDP. B. increases the money supply, which leads to decreased interest rates and a decrease in GDP. C. decreases the money supply, which leads to increased interest rates and a decrease in GDP. D. decreases the money supply, which leads to decreased interest rates and a decrease in GDP.
If the price of orange juice rises 10%, and as a result the quantity demanded falls by 10%, then one can conclude that the demand for orange juice
A) is perfectly elastic. B) is inelastic. C) has a unitary elasticity. D) has a constant elasticity.