Which of the following is correct?
a. Over the business cycle investment fluctuates more than consumption.
b. Economic fluctuations are easy to predict.
c. During recessions employment rises.
d. Because of government policy the U.S. had zero recessions in the last 25 years.
a
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Instead of throwing away a worn-out pair of jeans, a cowboy trades them in for $12 . The jeans are resold for $45 to someone who likes to project a rugged image. These transactions are Pareto improvements
a. True b. False
Suppose that a profit-maximizing monopoly firm undergoes a substantial technological change that reduces its marginal and average total costs by $40. If in response to its reduction in cost the firm changes its price in a profit-maximizing way, then we can predict that its total economic profit will:
A. rise. B. remain unchanged. C. It is not possible to make a determination from the information given. D. fall.