In a business cycle, the period following a trough is called an expansion.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The belief that the government can do absolutely nothing in either the short run or the long run to reduce the unemployment rate, because people will anticipate the government's actions and respond to it, is held by the
a. rational expectations school b. neo-Keynesian school c. classical school d. supply-side school e. Keynesian school
The interest rate set for a bond at the time of issuance is the
A. Par value. B. Coupon rate. C. Default rate. D. Liquidity rate.
As per capita GDP has risen over time in the United States and other countries, the
What will be an ideal response?
A monopolist earns $50 million annually and will maintain that level of profit indefinitely, provided no other firm enters the market. If another firm successfully enters the market, the incumbent's profits remain at $50 million the first period, but fall to $25 million annually thereafter. The opportunity cost of funds is 10 percent, and profits in each period are realized at the beginning of each period. If the monopolist can earn $27 million indefinitely by limit pricing, should it do so?
A. No, it will earn $297 million in present value if it does this. B. Yes, it will earn $297 million in present value if it does this. C. No, it will earn $270 million in present value if it does this. D. Yes, it will earn $270 million in present value if it does this.