The output expansion effect of the sale of a firm's last ?Q units of output is:
A. the additional revenue from selling ?Q units at price P(Q).
B. the reduced revenue from selling (Q - ?Q) units at a lower price of P(Q).
C. the additional revenue from selling ?Q units at price P(Q + ?Q).
D. the reduced revenue from selling (Q - ?Q) units at a lower price of P(Q - ?Q).
A. the additional revenue from selling ?Q units at price P(Q).
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Which of the following most clearly indicates that fiscal policy is becoming more expansionary?
a. An increase in the budget deficit relative to GDP b. A reduction in the budget deficit relative to GDP c. An increase in the budget surplus relative to GDP d. An increase in the nominal (dollar) size of the budget deficit
Differences in opportunity cost allow for gains from trade
a. True b. False Indicate whether the statement is true or false