If real income rises faster than absorption during a time of economic expansion, then
A) the nation will experience a current account surplus.
B) the nation will experience a current account deficit.
C) national production will increase until absorption and income are balanced.
D) the nation's imports must rise relative to its exports.
A
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A successful market economy requires
A) an equitable distribution of income and limits on immigration. B) generous unemployment benefits and paid medical leave for everyone in the labor force. C) a government-controlled banking system and government price controls. D) well-defined property rights and an independent court system to adjudicate disputes based on the law.
Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm will realize an economic:
A. loss of $320.
B. profit of $480.
C. profit of $280.
D. profit of $600.