Refer to the above graph. At the profit-maximizing price and output this firm:
A. incurs economic losses.
B. should shut down.
C. earns positive economic profits.
D. breaks even.
Answer: C
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What will be an ideal response?
During periods of hyperinflation, which of the following is the most likely response of consumers?
a. Save as much as possible. b. Spend money as fast as possible. c. Invest as much as possible. d. Lend money.
A downward shift in the consumption function can be caused by:
a. expectations of higher inflation. b. an increase in wealth. c. a lower price level. d. none of these.
Nominal GDP in a country was $8759.9 billion in 2017 and $9254.6 billion in 2018. The GDP deflator was 102.86 for 2017 and 104.37 for 2018.(a)What is the growth rate of nominal GDP between 2017 and 2018?(b)What is the inflation rate from 2017 to 2018?(c)What is the growth rate of real GDP from 2017 to 2018?
What will be an ideal response?