If an increase in aggregate expenditures results in no increase in real GDP, we can surmise that the:
A. economy is in a deep recession.
B. MPC equals 1.
C. economy is already operating at full employment.
D. price level has fallen.
C. economy is already operating at full employment.
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Tolls for government turnpikes have features of a tax based on _____
a. the benefit principle b. the ability-to-pay principle c. the Ramsey rule d. redistribution
Refer to Figure 8.6, which shows just three of a firm's various possible short-run average cost curves. Suppose the firm is currently producing 160 units at an average cost of $90 per unit. Which of the following statements is true?
A. The firm could reduce its short-run average cost by producing more output.
B. The firm could reduce its short-run average cost by producing less output.
C. The firm is producing the level of output that minimizes short-run average cost.
D. The firm is producing its output at the lowest possible long-run average cost.