The vertical portion of the AS curve
A. is a short-run phenomenon.
B. shows national output rising with the price level.
C. does not shift over time, due to economic growth.
D. represents the maximum output level.
D. represents the maximum output level.
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Comparative advantage can change over time
Indicate whether the statement is true or false
Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit maximizing firm?
a. The firm is a price taker. b. Price exceeds average total cost. c. The elasticity of demand facing the firm is ?3. d. the firm can vary several inputs in the short run.
If the economy is not operating at full-employment real GDP, classical economists prescribe a government policy of nonintervention
a. True b. False Indicate whether the statement is true or false
Consider a market that sells some of its goods as exports. Who does NOT benefit?
A) foreign consumers B) workers in the industry C) domestic consumers D) domestic producers