The long-run aggregate supply curve of an economy corresponds to
A. a point on the production possibilities curve.
B. a point outside the production possibilities curve.
C. a point inside the production possibilities curve.
D. none of these: there is no relationship between the long-run aggregate supply curve and the production possibilities curve.
Answer: A
You might also like to view...
In response to an increase in total factor productivity
A) both the substitution effect and the income effect suggest that hours worked should increase. B) the substitution effect suggests that hours worked should increase, while the income effect suggests that hours worked should decrease. C) the substitution effect suggests that hours worked should decrease, while the income effect suggests that hours worked should increase. D) both the substitution effect and the income effect suggest that hours worked should decrease.
Labor productivity is calculated by dividing GDP by
a. population. b. the price level. c. capital stock d. labor force.
What does the Herfindahl-Hirschman Index measure? How is it calculated?
Which is a typical property of the production function?
A. constant returns to scale B. the MPL increases as capital input increases C. the MPK increases as the labor input increases D. all of the above