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

Economics

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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

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Describe how if a price-fixing game is repeated over and over, the cooperative outcome might be attained.

What will be an ideal response?

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The income elasticity of demand for all goods taken together must be

A. between 0 and 1. B. zero. C. +1. D. -1.

Economics