When the unemployment rate is ________ the natural unemployment rate, real GDP is ________ potential GDP

Under which of the following conditions will a profit-maximizing perfectly competitive firm shut down in the short run?

A) when it is making a normal profit B) whenever its marginal cost is less than its marginal revenue C) when the price is less than its minimum average variable cost D) whenever its total cost is greater than its total revenue E) when the price is less than its minimum average total cost

What impact do private insurance companies and Medicare have on national medical costs?

A) Medical costs go up because insurance leads to an increase in the quantity demanded of medical services. B) Medical costs go up because insurance will lead to the reduction in the supply of medical services due to the amount of paperwork required. C) Medical cost are unaffected by insurance companies. D) Medical costs go down because the insurance company pays the bill.