When an economy is experiencing a negative output gap, there is:
A. inflationary pressure due to low demand.
B. inflationary pressure due to high demand.
C. significant inflationary pressure due to low demand.
D. significant inflationary pressure due to high demand.
A. inflationary pressure due to low demand.
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People who are in the process of changing jobs are counted as
A. frictionally unemployed. B. underemployed. C. structurally unemployed. D. cyclically unemployed.
Suppose Atlas Publishing, a perfectly competitive firm, currently produces 2,000 maps per day at a total cost of $1,600 . At its current level of output, Atlas is producing where the marginal revenue curve intersects a rising marginal-cost curve. Which of the following can be concluded about Atlas Publishing?
a. It is maximizing profit. b. It should produce more to maximize profit. c. It is incurring losses. d. It should produce less to maximize profit. e. It should produce more to break-even.