A perfectly horizontal demand curve has

The aggregate supply curve (short run) is upward-sloping because ________.

A. wages and other resource prices are flexible upward but inflexible downward B. the price level is flexible upward but inflexible downward C. wages and other resource prices match changes in the price level D. per-unit production costs rise as the economy moves toward and beyond its full-employment real output

The long-run aggregate supply curve occurs at the level of real GDP consistent with

A) no inflation. B) the natural rate of unemployment. C) individuals' tastes and preferences. D) low levels of inflation.

Which of the following CORRECTLY describes how price adjustments eliminate a shortage?

A) As the price rises, the quantity demanded decreases while the quantity supplied increases. B) As the price rises, the quantity demanded increases while the quantity supplied decreases. C) As the price falls, the quantity demanded decreases while the quantity supplied increases. D) As the price falls, the quantity demanded increases while the quantity supplied decreases.

If total revenue falls as more output is produced,

a. marginal revenue is negative b. marginal revenue is positive c. marginal cost is negative d. average revenue is negative e. total costs exceed total revenue