the amount by which equilibrium GDP falls short of full-employment GDP
What will be an ideal response?
a recessionary gap
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When economic profits are zero for a firm in a perfectly competitive market, it means that:
A. average total costs are zero. B. price is equal to minimum average total cost. C. average variable costs are minimized. D. MR is equal to AVC.
It is possible to distinguish a monopoly from perfect competition by noting that only competitive firms can earn economic profits in the short run.
Answer the following statement true (T) or false (F)
? Nominal GDP is $10,000 billion in 2011, but real GDP is only $9,000. It follows that:
a. the GDP deflator is equal to 111
b. the GDP deflator is equal to 100.
c. the GDP deflator is equal to 90.
d. prices must have decreased relative to the base year.
No ACOs have been able to generate shared savings.
a. true b. false