When the Macroeconomy Is Doing Poorly (As It Was in 2009),profits

question 17

True/False

When the macroeconomy is doing poorly (as it was in 2009),profits of existing firms decrease,creating an incentive for existing firms to exit unprofitable markets.This in turn makes it more difficult for the remaining firms to mark up price over average or marginal cost.

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Definitions:

Portugal

A country located in southwestern Europe on the Iberian Peninsula, known for its rich history, cultural heritage, and maritime discoveries.

Free Trade Policies

Advocate for minimal restrictions on the import and export of goods and services between countries, aiming to increase economic efficiency and growth.

U.S.

A country located in North America, known officially as the United States of America, which is a federal republic consisting of 50 states.

Goods And Services Deficit

The situation where a country imports more goods and services than it exports, leading to a negative trade balance.