When economic profits are zero in equilibrium, The firms revenue must be sufficient to cover all opportunity costs if the firm is to remain in business in the long run
Answer the following statement(s) true (T) or false (F)
Ans: True.
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In a simple economy without government or foreign trade, any income not consumed is called
A) net investment. B) depreciation. C) saving. D) investment.
A falling GDP causes __________ the money demand curve
A) downward movement along B) upward movement along C) a rightward shift of D) a leftward shift of
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
The amount of output lost when the inflation rate is reduced by one percentage point is called
A. the Solow residual. B. Okun's law. C. Planck's constant. D. the sacrifice ratio.