The full-employment and full-adjustment level of real Gross Domestic Product (GDP) in the economy is represented by
A. the distance between the LRAS curve and the AD curve.
B. the AD curve.
C. the LRAS curve.
D. the horizontal line at the price level.
Answer: C
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A zero pollution level is not achievable because
A) corporations would lobby against it. B) it implies no production and no consumption. C) it implies an output level larger than that from a competitive market equilibrium. D) consumption would be larger than production.
Profits will be maximized when the slope of the total revenue curve and the slope of the total cost curve equal zero
a. True b. False Indicate whether the statement is true or false
Which of the following is not a reason economies experience structural unemployment?
a. job search b. unions c. minimum-wage laws d. efficiency wages
Refer to Figure 8.2 above. The total fixed costs for The Barber Shop are $3,000. If The Barber Shop produces 300 hair cuts, the average fixed costs are A) $.20. B) $5. C) $10. D) $100.