Evaluate the following statement. If a firm is suffering economic losses then the sensible thing to do is to shut down temporarily
What will be an ideal response?
Not necessarily. A firm should only shut down if it is not earning an operating profit. If a firm is receiving less total revenue than its total variable cost then this advice would make sense.
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The Fed first announced an inflation target of 2% in
A) 1979. B) 2005. C) 2012. D) 2015.
An increase in domestic demand will have which of the following effects in an open economy?
A) a smaller effect on output than in a closed economy and a positive effect on the trade balance B) a smaller effect on output than in a closed economy and a negative effect on the trade balance C) a larger effect on output than in a closed economy and a positive effect on the trade balance D) a larger effect on output than in a closed economy and a negative effect on the trade balance