An increase in aggregate demand will have a smaller long-run effect on real GDP if the:
a. aggregate demand curve is flat
b. short-run aggregate supply curve is horizontal.
c. economy is well below potential output.
d. economy is already at potential output.
e. aggregate demand curve is fairly steep.
d
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Sandra uses her sewing machine, thread, and yards of denim to produce jean skirts. The sewing machine is an example of a. labor
b. physical capital. c. human capital. d. natural resources.
International trade allows a country's consumption possibilities to exceed its production possibilities.
Answer the following statement true (T) or false (F)
In 1995 in the United States, consumption expenditure was $5,152 billion, investment was $1,164 billion, government purchases of goods and services were $1,407 billion, and total exports were $855 billion. GDP equaled
What will be an ideal response?
Suppose that Figure 10.5 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, the consumer surplus would be:
A. $2,450. B. $1,225. C. $612.50. D. $262.50.