Other things equal, an improvement in productivity will:
A. increase the equilibrium price level.
B. shift the aggregate supply curve to the left.
C. shift the aggregate supply curve to the right.
D. shift the aggregate demand curve to the left.
C. shift the aggregate supply curve to the right.
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Total planned real expenditures measured along the aggregate demand curve are made up of
A) consumption spending, factor payments, investment spending, and net export spending. B) consumption spending, income, government spending, and net export spending. C) consumption spending, saving, investment spending, and government spending. D) consumption spending, investment spending, government spending, and net export spending.
If the firm in the graph were producing Q2 and charging P2, it:
These are the cost and revenue curves associated with a firm.
A. represents the perfectly competitive outcome.
B. is an efficient outcome.
C. is an outcome that eliminates deadweight loss.
D. All of these statements are true.
Exhibit 7-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 As shown in Exhibit 7-9, the average total cost of producing 5 units is:
A. $20. B. $30. C. $50. D. $250.
A) Given the information above, if full employment GDP were 2,300, would there be an inflationary gap or a recessionary gap? B) What two fiscal policy measures would you recommend to remove that gap?
