In Year 1 suppose the economy is at potential GDP and that the federal budget deficit equals $100 billion. In Year 2 the federal budget deficit rises to $150 billion, but the cyclically adjusted budget deficit falls to $75 billion
How can the actual budget deficit rise and the cyclically adjusted budget deficit fall?
The rise in the actual budget deficit with a decline in the cyclically adjusted budget deficit indicates that the economy grew less than anticipated in Year 2, perhaps falling into a recession. The decline in the cyclically adjusted budget deficit indicates that the budget deficit would have fallen if the economy had been at potential GDP in Year 2.
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Given that the firm only chooses to sell the no-name brand, how should it price its product?
a. Price low, sell to both users b. Price high, sell only to the professional chefs c. Price low, sell only to the professional chefs d. Price high, sell only to the home users
Which of the following is not correct?
A. Where marginal product is greater than average product, average product is rising. B. Where total product is at a maximum, average product is also at a maximum. C. Where marginal product is zero, total product is at a maximum. D. Marginal product becomes negative before average product becomes negative.