In the above figure, if the price is $12, a profit-maximizing perfectly competitive firm will have an economic profit
A) of less than $100 but more than $0.
B) of more than $100.
C) that is negative, that is, it will have an economic loss.
D) of zero, that is, it will break even with a normal profit.
D
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The problem with a detailed federal government budget is that: a. monetary policy becomes more difficult to implement
b. it reduces the flexibility of discretionary fiscal policy. c. Congress cannot keep it up to date. d. there is a shortage of congressional committees that deal with the budget. e. there is a short review period, resulting in poor choices in funding programs.
The modern view of the Phillips curve suggests that:
a. when inflation is reduced, unemployment will fall below the natural rate. b. the Phillips curve is an unstable relationship. c. systematic demand stimulus policies will be unable to affect prices in the long run. d. there will be a trade-off between inflation and unemployment in the long run.