To cut inventories, firms produce ________ and real GDP ________, which ________ people's incomes

Jim has estimated elasticity of demand for gasoline to be -0.7 in the short-run and -1.8 in the long run. A decrease in taxes on gasoline would: a. lower tax revenue in both the short and long run. b. raise tax revenue in both the short and long run

c. raise tax revenue in the short run but lower tax revenue in the long run. d. lower tax revenue in the short run but raise tax revenue in the long run.

Economic profit is accounting profit minus the cost of capital

Indicate whether the statement is true or false