What is producer surplus? How is it measured?
What will be an ideal response?
Producer surplus is the excess of the amount received from the sale of a good or service over the cost of producing it. The producer surplus is measured as the area under the price and above the supply curve over the entire quantity sold.
Economics
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Which of the following monetary policy tools is more effective when the economy faces the interest rate zero-lower-bound problem?
A) open market operation B) discount policy C) required reserve ratio D) the Fed's liquidity provision
Economics
In the long run, the currency of a country with a higher inflation rate will depreciate against the currency of a country with a lower inflation rate
a. True b. False
Economics