The long run aggregate supply curve is vertical because
A) a change in the level of prices will have no effect on real output in the long-run.
B) the production possibilities curve is vertical.
C) the aggregate demand curve is downward sloping.
D) technology increases at a constant rate.
A
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If there is an excess supply of sport utility vehicles, then:
A. quantity demanded is greater than quantity supplied. B. quantity supplied is greater than quantity demanded. C. demand is greater than supply. D. supply is greater than demand.
Refer to Figure 2-4. A movement from ________ could occur because of additional government restrictions toward allowing immigrant labor
A) Y to X B) W to X C) V to W D) X to W
Which of the following is TRUE of the price charged by a monopolistically competitive firm at the profit-maximizing level of output?
A) P > MC B) P = MC C) P = MR D) P < AVC
The diagram shows the short-run average total cost curves for five different plant sizes of a firm. If in the long run the firm should produce output 0x, it should do it with a plant of size:
A. #4.
B. #3.
C. #2.
D. #1.