A popular resort restaurant will maximize profits if it chooses to stay open during the less-crowded "off season" when its total revenues exceed its fixed costs

In the United States, recessions are informally defined as ________ in real GDP

A) two consecutive quarters of positive growth B) two consecutive quarters of negative growth C) three consecutive quarters of negative growth D) three consecutive quarters of positive growth

Which of the following statements is true?

A) The long-run aggregate supply (LRAS) curve shows the Real GDP the economy is prepared to supply at different price levels, assuming wage rates and all other resource prices have fully adjusted to eliminate a recessionary or inflationary gap. B) Laissez-faire is a government policy of raising aggregate demand in order to eliminate a recessionary gap. C) An economy can operate beyond its physical PPF, but not beyond its institutional PPF. D) If the economy is self-regulating, it is always in long-run equilibrium. E) a and c