When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

A business owner makes 50 items a day. Each day he/she contributes 8 hours to produce those items. If hired, elsewhere he/she could have earned $10 an hour. The item sells for $10 each. Production does not stop during weekends. If the explicit costs total $10,00 . for 30 days, the accounting profit for the month equals:

a. $1,760 b. $2,240 c. $11,760 d. $5,000

Figure 3-20

Refer to . If the price decreases from $22 to $16, consumer surplus increases by
a.
$120.
b.
$360.
c.
$480.
d.
$600.