Which one of the following statements is true in the four-sector circular model?
a. Money flows from government to households for taxes.
b. Money flows from foreign economies to households for exports.
c. Money flows from government to firms for goods and services.
d. Money flows from firms to foreign economies for exports.
e. Money flows from households to foreign economies for resources.
c
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Use the above figure. Assuming that policy actions are unanticipated, if the economy is at point A and the policy makers want to get to point B, they could
A) decrease taxation. B) increase the money supply. C) increase government spending. D) decrease the money supply.
Which of the following statements applies to a monopolist but not to a perfectly competitive firm at their profit-maximizing outputs?
A) Average revenue equals average cost. B) Marginal revenue is less than price. C) Price equals marginal cost. D) Marginal revenue equals marginal cost.