If rational expectations cause people's price expectations to be generally correct, active policy will influence the price level but not output
a. True
b. False
Indicate whether the statement is true or false
True
Economics
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A single-price monopoly has marginal cost of $23 and marginal revenue of $28. Which of the following is definitely correct?
A) It is maximizing profit. B) To increase profit, it should produce less. C) To increase profit, it should produce more. D) It should shut down. E) It is making an economic profit.
Economics
You agree to lend ________ to a friend for a year at an annual interest rate of 10%. At the end of the year your friend pays you $500 in interest.
A. $50 B. $550 C. $5,000 D. $5,500
Economics