The output level attained by a perfectly competitive firm in the short run, where price equals average total cost is called the break-even point
Indicate whether the statement is true or false
true
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Crowding out refers to a decrease in government purchases as a result of an increase in private expenditures
Indicate whether the statement is true or false
The future of private sector labor unions is
A. bright because of the increased availability of undocumented workers from other countries. B. bleak because of the growing economic importance of small employers in service industries. C. bright because of the success of the PATCO strike. D. bleak because of the recent increases in the minimum wage earned by non-union workers.
Answer the following statement(s) true (T) or false (F)
1. The formula for calculating aggregate demand is the same formula used to calculate GDP using the expenditure approach. 2. The aggregate demand and aggregate supply model is a closed economy model because it includes international trade effects. 3. An inverse relationship exists between the quantity of real GDP demanded and the overall price level. 4. The aggregate demand curve is downward sloping. 5. Purchasers in the economy demand more real output when the price level rises.
Chain-weighted price indices are constructed such that
A) all years' levels of GDP are directly related to a base year level of GDP. B) prices of one good can be directly compared with prices of other goods. C) prices in different years can be directly compared with one another. D) prices in different economies can be directly compared with one another.