Macroeconomics

The sum of personal consumption expenditure, investment expenditure, g

The sum of personal consumption expenditure, investment expenditure, government expenditure, and net export expenditure on the total amount of real output in the economy in a given period of time is called: A) potential GDP. B) aggregate expenditure. C) real money balances. D) none of the above.   ANSWER B

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Date: September 10th, 2020

Assume a group of firms has formed a cartel and the cartel is in engag

Assume a group of firms has formed a cartel and the cartel is in engaged in joint profit maximization. As such, each firm, acting in its own interests, has an incentive to expand production up to the point at which: A) its marginal cost equals the marginal revenue earned by the cartel. B) its marginal […]

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Date: September 10th, 2020

To maximize joint profits, a cartel must determine the level of output

To maximize joint profits, a cartel must determine the level of output at which: A) joint marginal revenue equals the marginal cost of the largest member of the cartel. B) marginal revenue equals joint marginal cost. C) the horizontally sum of the members marginal cost curves is at a minimum. D) joint marginal revenue equals […]

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Date: September 10th, 2020