Suppose the economy is self-regulating, the price level is 120, the quantity demanded of Real GDP and the quantity supplied of Real GDP in the short run both equal $5.7 trillion, and the quantity supplied of Real GDP in the long run is $5.2 trillion. Given all of this information, we can conclude that the economy ____________ in short run equilibrium, and that the price level in long run
equilibrium will be _____________ than 120.
A) is not; less
B) is; greater
C) is; less
D) is not; greater
B
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A time-series graph reveals whether there is a ________, which represents ________
A) trend in a variable; a general tendency for the variable to rise or fall B) relationship between two variables; a cross-section relationship C) trends in two variables; unrelated variables D) relationship between two variables; a trend in a variable E) cross-section relationship; a general tendency for the variables to rise or fall
Explain why a firm may rationally make an investment when its cash flow from the investment is not positive each year
What will be an ideal response?
If the firm in the above figure produces output level D, it incurs an average fixed cost of production equal to the distance
A) DK. B) RN. C) JL. D) KR.
A profit-maximizing monopolist that produces in the short run will
a. produce the level of output where marginal revenue exceeds marginal cost by the largest amount b. increase output as long as the marginal revenue exceeds the marginal cost of producing that unit c. produce the level of output where average total cost is at a minimum d. increase price as long as the average revenue exceeds the average total cost e. produce the level of output where average revenue exceeds average total cost by the largest amount