Potential GDP is the maximum output a firm is capable of producing
Indicate whether the statement is true or false
FALSE
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Assume the current price of good X is too high, i.e., it is above the equilibrium price. Describe the changes that would occur in a market as a result, i.e., explain how the market would adjust to equilibrium
What will be an ideal response?
Upon which of the following industries is a restrictive monetary policy likely to be most effective?
A. Furniture. B. Clothing. C. Food processing. D. Residential construction.
Related to the Economics in Practice on p. 67: Increased preference for quinoa would shift the ________ curve for quinoa to the right and lead to a(n) ________ in the price of quinoa, ceteris paribus.
A. supply; decrease B. demand; decrease C. demand; increase D. supply; increase
Refer to the information provided in Figure 15.2 below to answer the question(s) that follow. 
Figure 15.2 Refer to Figure 15.2. If We Do Hair is maximizing profit as a monopolistically competitive firm, it is earning a profit of
A. $180. B. $220. C. $320. D. $480.