To eliminate a recessionary gap, the government can ________ government expenditures on goods and services or ________ taxes

Assume that price exceeds average variable cost over the relevant range of demand

If a monopolistically competitive firm is producing at an output where marginal revenue is $111.11 and marginal cost is $118, then to maximize profits the firm should increase its output.

In the model of the money supply process, the Federal Reserve's role in influencing the money supply is represented by

A) both the required reserve ratio and the market interest rate. B) the required reserve ratio, nonborrowed reserves, and borrowed reserves. C) only borrowed reserves. D) only nonborrowed reserves.