The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. If Scott offers two swim tours per week, he incurs a marginal cost of

If a producer is not able to expand its plant capacity immediately, it is

A) operating in the long run. B) operating in the short run. C) losing money. D) bankrupt.

If the short-run equilibrium output of the United States exceeds the potential output, the Fed:

a. employs an active monetary policy to close a recessionary gap. b. employs an active monetary policy to close an expansionary gap. c. relies on a passive approach to close a recessionary gap. d. relies on a passive approach to close an expansionary gap e. employs an expansionary fiscal policy.