When potential GDP increases,
A) there is a movement down along the AS curve.
B) there is a movement up along the AS curve.
C) there is neither a movement along nor a shift in the AS curve.
D) the AS curve shifts leftward.
E) the AS curve shifts rightward.
E
You might also like to view...
Which of the following is true of price leadership?
a. Price leadership requires that firms collude. b. Price leadership will not exist when there is a dominant firm. c. Price leadership may come into being as firms recognize the benefits of not engaging in competitive pricing. d. Price leadership is most likely to arise when no firm has a history of making accurate evaluations of market conditions. e. Price leadership is never used in the real world.
If the United States could produce 4 tons of potatoes or 2 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, the country with the comparative advantage in producing wheat is ____ and the country with the absolute advantage in producing potatoes is ____.
A. the United States; the United States B. the United States; Ireland C. Ireland; the United States D. Ireland; Ireland
________: as disposable income of a consumer increases, the percentage of income spent for food decreases if all other things remain constant
Fill in the blank(s) with correct word
If a firm sells its product in a monopolistic market, even though the firm operates in a perfectly competitive labor market, the firm will employ workers up to the point where
A. the MRP = the wage rate. B. the MRP = the output price. C. TR = TC. D. the MRP = the marginal physical product of labor.