A firm will continue to produce if total revenue is greater than total variable cost even if total revenue is less than fixed cost

In general, activists are ________ about the ability of the economy to remain stable and non-activists are ________

A) pessimistic; optimistic B) optimistic; optimistic C) pessimistic; pessimistic D) optimistic; pessimistic

Before the Great Depression of the 1930s, most economists believed that

a. only active government policy could prevent recessions or inflation. b. a capitalist economy had a natural tendency to cure recessions or inflation. c. a capitalist economy had a natural tendency to inflation. d. recessions and depressions were inevitable until the economy broke down completely.