In the long run, a perfectly competitive firm leaves the market if the market price is less than the firm's average total cost
Indicate whether the statement is true or false
TRUE
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If the output gap equals -200 billion, then:
A. potential GDP is lower than actual GDP. B. there is no cyclical unemployment. C. cyclical unemployment equals the sum of structural and frictional unemployment. D. there is a recessionary gap.
Income inequality has risen in recent years due to a rise in labor's share of national income as a result of globalization
a. True b. False Indicate whether the statement is true or false
The output expansion effect of the sale of a firm's last ?Q units of output is:
A. the additional revenue from selling ?Q units at price P(Q). B. the reduced revenue from selling (Q - ?Q) units at a lower price of P(Q). C. the additional revenue from selling ?Q units at price P(Q + ?Q). D. the reduced revenue from selling (Q - ?Q) units at a lower price of P(Q - ?Q).
The structural deficit can be used to estimate the thrust of current fiscal policy
a. True b. False Indicate whether the statement is true or false