When equilibrium GDP falls below potential GDP, an inflationary gap exists

a. True
b. False
Indicate whether the statement is true or false

False

Economics

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How can lack of investment in social capital affect private firms' profits?

What will be an ideal response?

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Profit functions are homogeneous of degree:

a. zero in input and output prices. b. zero in input prices. c. one in input and output prices. d. one in input prices.

Economics