A firm's economic profits are given by:
a. total revenue minus total accounting cost.
b. the owner's opportunity cost.
c. total revenue minus total economic cost.
d. total revenue minus the cost of capital.
c
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Assuming the aggregate supply curve is vertical, which of the following is most likely to occur if the Fed pursues expansionary monetary policy?
A. The equilibrium output will increase but the price level will stay the same. B. The equilibrium price level will increase but output will stay the same. C. The equilibrium price level and output will both decrease. D. The equilibrium price level and output will both increase.
The United States experienced a deep recession between 2007 and 2009. Which type of unemployment would most likely increase during that period of recession?
A. cyclical unemployment B. frictional unemployment C. seasonal unemployment D. structural unemployment