The economy can be in equilibrium and in a recessionary gap simultaneously

Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 3 hours per day

If he is following the marginal principle, what must his marginal cost per hour be? A) $24 B) $32 C) $40 D) $48

At year-end 2014, the national debt of the United States was approximately

a. 5 percent of GDP. b. 25 percent of GDP. c. 77 percent of GDP. d. 107 percent of GDP.