If the Structural Unemployment Rate Is 2 Percent,the Frictional Unemployment

question 71

True/False

If the structural unemployment rate is 2 percent,the frictional unemployment rate is 3 percent,and the current unemployment rate is 8 percent,then the economy is in a recessionary gap.

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Definitions:

ATC

Average Total Cost; the total cost of production divided by the total output produced.

Economic Profits

The remaining amount after deducting total expenses from the total income, taking into account all direct and indirect costs.

Profit Maximizes

A strategy or objective of businesses to achieve the highest possible profit, where total revenue exceeds total costs by the largest margin.

MR

Short for Marginal Revenue, it represents the additional income earned from selling one more unit of a good or service.