Assuming that there are NO income taxes, if both autonomous taxes, and government expenditures were to rise by $100 million, we would expect equilibrium GDP to
A) rise by $100 million.
B) rise, but by a multiple of $100 million.
C) rise by less than $100 million.
D) remain unaffected because leakages have changed by the same amount.
A
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Refer to Table 13-3. What is the amount of the firm's loss at its optimal output level?
A) $0 B) $41 C) $45 D) $50
Wal-Mart created a competitive advantage with its inventory system to reduce the ratio of cost of goods sold to sales, expecting:
a. to enjoy huge economic profits forever. b. that its rivals will never imitate their strategy and it will continue to enjoy positive economic profits. c. that its rivals will immediately do the same thing and it will end up earning zero profits. d. to enjoy economic profits for a few years before its rivals caught up. e. that it will at least be able to cover its fixed costs.