Suppose you sell a kayak for $600, but you were willing to sell it for $450 . The buyer was willing to pay $650 . The total surplus is $200

Which of the following is not a contribution of small firms to development:

a. permit the economy to adjust to recession by hiring those laid off in the formal sector b. create employment c. source of training and skills d. use little capital e. all of the above are contributions of small firms

An inflationary gap exists when the macro economy is in equilibrium at more than the potential output of the economy because aggregate demand is so high that the economy is operating temporarily beyond its long-run capacity.In other words, the AD=AS occurs to the right of the vertical long-run supply curve.

Indicate whether the statement is true or false.