In the short run,
a. all of the firm's input quantities, including plant size, become adjustable.
b. firms are not constrained by past decisions.
c. firms have relatively little opportunity to change production processes.
d. all of the firm's current commitments come to an end.
c
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Along a linear consumption function,
A) the average propensity to consume rises with income, but the marginal propensity to consume falls with an increase in income. B) the marginal propensity to consume rises with an increase in income. C) the average propensity to consume falls with an increase in income. D) both the average propensity to consume and the marginal propensity to consume rise with an increase in income.
A change in which variable will change the market demand for a product?
A) the price of the product B) population C) the prices of substitutes in production D) technology
The Keynesian model agrees with monetarists and new classical models about the fact that
a. changes in the money supply drive most changes in aggregate demand. b. aggregate supply is upward sloping because of differences between actual and expected price levels. c. changes in aggregate demand drive business cycles. d. Both b and c e. None of the above
First and foremost, a market consists of
a. substitute goods b. complementary goods c. goods produced by the same firm d. goods produced with the same inputs e. goods that serve dissimilar purposes, which is why they are grouped