The difference between short-run and long-run cost is that in the short run,
a. there are shortages of labor that can restrict output
b. only labor can be changed to increase or decrease production
c. fixed factors of production have already been chosen
d. the market-day supply limits the amount by which producers can change production
e. all factors of production are variable
C
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In the figure above, as the price level increases, the aggregate demand curve will
A) shift from AD1 to AD3 and then back to AD1. B) shift from AD1 to AD3. C) shift from AD1 to AD2. D) not shift, but the aggregate demand curve will change so that it is positively sloped. E) not shift.
A supply curve
A) is a curve that shows the relationship between the price of a product and the quantity of the product supplied. B) is the relationship between the supply of a good and the cost of producing the good. C) is a curve that shows the relationship between the price of a product and the quantity of the product that producers and consumers are willing to exchange. D) is a table that shows the relationship between the price of a product and the quantity of the product supplied.
In a small Asian country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600. Based on this information, what is the slope of the per-worker production function in this range?
A) 0.06 B) 6.6 C) 66.6 D) 666
Refer to Scenario 21-1. Based on the information above, what is the level of private saving in the economy?
A) $3 trillion B) $4 trillion C) $5 trillion D) $8 trillion