A lower price level combined with a decrease in real GDP occurs when the
A) short-run aggregate supply curve shifts rightward.
B) short-run aggregate supply curve shifts leftward.
C) aggregate demand curve shifts rightward.
D) aggregate demand curve shifts leftward.
D
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Which of the following allows us to determine the value of average consumption spending?
a. leading economic indicators
b. representative household analysis
c. indexing
d. ratio analysis
X-inefficiency refers to the situation in which:
A) highly competitive firms have less incentive to minimize their costs of production than other firms because the highly competitive firms have almost no chance to earn above-average profits. B) firms are unable to minimize their costs of production because there is no potential for input substitution. C) firms that use labor-intensive production methods tend to be less efficient than firms that use capital-intensive production methods. D) firms with market power have less incentive to minimize their costs of production than more competitive firms.
An increase in the government budget deficit shifts the supply of domestic currency in the market for foreign exchange to the right
a. True b. False Indicate whether the statement is true or false
Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, its total variable cost is:
A. $12,500. B. $14,300. C. $19,800. D. $27,000.