Which of the following is a possible effect of automatic stabilizers on the federal budget?
A. An increase in the deficit when there is AD excess.
B. A decrease in the deficit during an expansion.
C. A decrease in the deficit during recessions.
D. An increase in the structural deficit during recessions.
Answer: B
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If demand increases and supply decreases, what is the effect on equilibrium price and equilibrium quantity?
A) The price falls and the quantity might increase, decrease, or remain the same. B) The price rises and the quantity might increase, decrease or remain the same. C) The quantity decreases and the price might rise, fall, or remain the same. D) The quantity increases and the price might rise, fall, or remain the same.
A firm has reached its shutdown point when price is equal to minimum average total cost
Indicate whether the statement is true or false