Refer to the information provided in Figure 26.1 below to answer the question(s) that follow.
Figure 26.1Refer to Figure 26.1. At aggregate output levels above $1,500 billion, firms in this economy are most likely experiencing
A. costs rising faster than output prices.
B. costs lagging behind increases in output prices.
C. costs falling as prices output increase.
D. costs increasing as fast as output prices.
Answer: D
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What will be the effect of a tax cut on consumption if consumption offers diminishing returns?
What will be an ideal response?
The supply curve for umbrellas
A) shows the supply of umbrellas consumers are willing and able to buy at any given price. B) is downward sloping. C) shows the relationship between the price of umbrellas and the quantity of umbrellas supplied. D) shows the relationship between the quantity of umbrellas firms are willing and able to supply and the quantity of umbrellas consumers are willing and able to purchase.
According to the life-cycle theory of consumption, people tend to consume more than they earn during their ________ years.
A. main working B. early C. later D. both B and C
The long-run aggregate supply curve would be represented by which line?
Refer to the graph above.
A. 1
B. 2
C. 3
D. 4