If a shift in aggregate demand only affects real Gross Domestic Product (GDP), then the short-run aggregate supply (SRAS) curve must be
A) upward sloping.
B) downward sloping.
C) horizontal.
D) vertical.
C
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In the long run, an expansionary monetary policy will lead to: a. a decrease in aggregate expenditure. b. an increase in unemployment
c. an increase in the price level. d. an increase in potential output. e. a decrease in the price level.
Most economists believe that classical theory describes the world in the short run but not in the long run
a. True b. False Indicate whether the statement is true or false
The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. Creamy Crisp's economic profit is: A. $150,000. B. $80,000. C. $230,000. D. $94,000.
If the marginal product of labor is less than the average product of labor, then the
A. marginal product must be increasing. B. average product must be decreasing. C. marginal product must be decreasing. D. Both B and C