How can a country experience economic growth and stable prices?
What will be an ideal response?
A country can experience economic growth and stable prices if aggregate supply and aggregate demand increase by the same amount. The new equilibrium then is at the same price level, but real GDP is higher.
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A firm that is producing the quantity at which marginal cost exceeds both average total cost and the market price will increase its economic profit by _______
A. producing a larger quantity B. raising the price to equal marginal cost C. producing a smaller quantity D. producing the quantity that minimizes average total cost
What determines the creditworthiness of any organization, including the federal government?
a. the size of its debt relative to its income base b. the interest rate at which it can borrow money c. the length of time it has existed d. the length of time it is expected to operate