Potential output is equal to
A. short-run aggregate demand.
B. long-run aggregate supply.
C. short-run aggregate supply.
D. long run aggregate demand.
Answer: B
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In which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates?
A. recession B. expansion C. trough D. peak
Negative marginal revenue means that
a. the firm is maximizing its economic profit b. the firm is maximizing its total revenue c. total revenue is increasing at an increasing rate as output increases d. total revenue is increasing at a decreasing rate as output increases e. total revenue is decreasing as output increases
A change in the expected price level is likely to cause which of the following?
a. a shift in the short-run aggregate supply curve and long-run aggregate supply curve b. a shift in the short run aggregate supply curve c. a shift in the aggregate demand curve d. a shift in the long-run aggregate supply curve
A forward exchange market contract obligates the owner to make a trade at a specified exchange rate a fixed number of days in the future
Indicate whether the statement is true or false