In a decreasing-cost industry, the entry of new firms lowers average cost at each level of output
Indicate whether the statement is true or false
TRUE
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Using the seasonal business cycle as your guide, during which quarter would you be most likely to expect an increase in your corporation's sales?
A) The first quarter of the year (January-March) B) The second quarter of the year (April-June) C) The third quarter of the year (July-September) D) The fourth quarter of the year (October-December)
An increase in the required reserve ratio would be
a. a restrictive policy because it lowers the amount of total reserves in the banking system. b. a restrictive policy because it lowers the amount of excess reserves in the banking system. c. an expansionary policy because it raises the amount of total reserves in the banking system. d. an expansionary policy because it raises the amount of excess reserves in the banking system. e. an expansionary policy because it raises the amount of required reserves in the banking system.
Trade flows measure the:
A. movement of resources between nations. B. exports and imports of goods and services. C. transfer of information from one nation to another. D. transfer of money between nations.
According to classical economists, in recessions, not only does the unemployment rate increase, so does the
A. natural rate of unemployment. B. level of fiscal stimulus. C. interest rate. D. level of potential output.