If actual output exceeds potential output, the short-run aggregate supply curve shifts downward over time.
Answer the following statement true (T) or false (F)
False
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When an equal percentage increase in the factors of production raises real GDP by the same percentage, the production function has the characteristic known as
A) constant returns to scale. B) constant marginal productivity. C) diminishing marginal productivity. D) increasing returns to scale.
When there is an external benefit, the unregulated market
A. overproduces the good or service. B. reaches the most efficient solution. C. maximizes public welfare. D. underproduces the good or service.
Which of the following is NOT a characteristic of rent controls?
A. Fewer newly built apartment buildings. B. Greater availability of apartments. C. Lower expenditures on maintenance. D. Excess demand for apartments.
An increase in the interest rate is an increase in the opportunity cost of consuming in the future.
Answer the following statement true (T) or false (F)