Difference matter for actual business decisions

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What is the difference between economic profits and accounting profits, and how does this difference matter for actual business decisions?

Reference no: EM13898503

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About the slope or shape of the aggregate supply curve : What do classical economists believe about the slope or shape of the Aggregate Supply curve? More traditional economists would refer to this AS curve drawn by the classical economist as the _____ ______ Aggregate Supply curve? What do classical econo..
About importance of supply shocks relative to demand shocks : How does rational expectations affect our perceptions concerning the speed or rate at which an economy moves back to potential. What does this say about the importance of supply shocks relative to demand shocks? Explain please.
Initially in long run macroeconomic equilibrium : Suppose that the U.S. economy is initially in Long Run Macroeconomic Equilibrium. An increase in the corporate income tax rate will lead the U.S. ____ curve to shift and create a(n) ____.
Rational expectations imply that households and firms : Rational expectations imply that households and firms are forward looking. What does that say about the importance of a short-run downturn in demand for firm decisions? Explain why firms might hold excess labor and capital during a recession. Explain..
Difference matter for actual business decisions : What is the difference between economic profits and accounting profits, and how does this difference matter for actual business decisions?
Perfect competition is market in which there are many firms : Perfect competition is a market in which there are many firms, each selling an identical product; many buyers; no barriers to the entry of new firms into the industry; no advantage to established firms; and buyers and sellers are well informed about ..
What is the permanent income hypothesis : What is the permanent income hypothesis? What are precautionary savings?
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Directly affected by changes in the real interest rate : All of the following are directly affected by changes in the real interest rate EXCEPT ____.

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