Cyclical deficits generally increase during recessions.
Answer the following statement true (T) or false (F)
True
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A perfectly competitive firm definitely makes an economic profit in the short run if price is
A) equal to marginal cost. B) equal to average total cost. C) greater than average total cost. D) greater than marginal cost. E) greater than average variable cost.
Refer to Figure 14.1. Other things equal, an increase in the Fed's concern about deviations of inflation from the target inflation rate is best represented as a movement from
A) point X to point Z. B) point Z to point X. C) point Z to point Y. D) point Y to point X.
If only current income is considered, beer taxes are _____. If lifetime income is considered, however, beer taxes are _____
a. regressive; progressive b. regressive; proportional c. progressive; regressive d. proportional; progressive
The dollar value of GDP increased approximately 4 percent during the year, but real GDP fell 2 percent. Which of the following best explains this data?
a. The real capacity of the economy increased more rapidly than money output. b. In the international sector, there was a balance of trade deficit of approximately 2 percent of GDP. c. The inflation rate was approximately 6 percent during the year. d. The general level of prices rose approximately 2 percent.