Interest earned on foreign holdings of U.S. federal, state and local government debt are recorded in the

A profit-maximizing firm in a competitive market will increase production when average revenue exceeds marginal cost

a. True b. False Indicate whether the statement is true or false

Economists need different models of the economy because:

A. The economy behaves differently depending on how much time has passed after a demand shock B. We need a different model to analyze a positive demand shock than we need to analyze a negative demand shock C. The way economic performance is measured of changes over time D. Prices tend to be less flexible over time