The long-run aggregate supply curve, according to the classical model,
A. is vertical at full employment GDP.
B. slopes gently upward.
C. is horizontal at the equilibrium price level.
D. may be downward sloping.
A. is vertical at full employment GDP.
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Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,100 and at the price level of 100 current aggregate demand is $1,200. If the government moves the economy back to the full-employment level of output by increasing taxes by $50, then the expenditures multiplier equals
A. 2. B. 10. C. 5. D. 4.
A firm's short-run average total cost curve is parallel to its short-run average variable cost curve
Indicate whether the statement is true or false
Refer to the above figure. The marginal cost of pollution abatement is curve
A) (1). B) (2). C) (3). D) (4).
Kachina is a senior majoring in graphic design at Awesome University (AU). While she has been attending college, Kachina started a computer consulting business to help senior citizens learn how to use their iPads. Kachina charges $25 per hour for her consulting services. She also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department
pays Kachina $20 per hour. If Kachina can work additional hours at either job, what is the opportunity cost if she spends one hour reading a novel? a. $20 b. $25 c. $100 d. $125