Which of the following is true in the short run?
a. The aggregate supply curve is horizontal
b. The aggregate supply curve is vertical.
c. Per-unit costs do not increase as much as output prices when the price level rises.
d. An increase in price per unit results in a decrease in profit per unit.
e. Firms' total costs of production decrease as output expands beyond the potential level.
c
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Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the
A) fact that Ms. Yellen faces scarcity. B) concept of entrepreneurship. C) fact that Ms. Yellen responds to incentives. D) use of capital.
The Fed's use of the ________ as an operating target in the 1970s resulted in ________ monetary policy
A) federal funds rate; countercyclical B) federal funds rate; procyclical C) M1 money supply; countercyclical D) M1 money supply; procyclical
Describe how if a price-fixing game is repeated over and over, the cooperative outcome might be attained.
What will be an ideal response?
The income elasticity of demand for all goods taken together must be
A. between 0 and 1. B. zero. C. +1. D. -1.