The long-run aggregate supply curve occurs at the level of real GDP consistent with
A) no inflation. B) the natural rate of unemployment.
C) individuals' tastes and preferences. D) low levels of inflation.
B
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If a 10% increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are
A. complements. B. substitutes. C. inferior. D. unrelated.
To increase living standards, public policy should
a. ensure that workers are well educated and have the necessary tools and technology. b. make unemployment benefits more generous. c. move workers into jobs directly from high school. d. ensure a greater degree of equality, taking all income-earners into account.
As a firm's output expands, the
A. ATC will reach a minimum before the AVC. B. AVC will reach a minimum before the ATC. C. ATC and AVC will reach minimums at the same output.
It is true that:
A. equal increases in government spending and taxes do not change the equilibrium GDP. B. equal increases in government spending and taxes reduce the equilibrium GDP. C. equal increases in government spending and taxes increase the equilibrium GDP. D. taxes have a stronger effect upon equilibrium GDP than do government purchases.