In the long run, what is the most important factor to shift the aggregate supply curve?
a. Input prices
b. Output prices
c. Productivity growth
d. Wage growth
c. Productivity growth
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Keynes mentioned two factors that influenced planned investment spending
A) interest rates and disposable income. B) interest rates and business expectations about the future. C) disposable income and business expectations about the future. D) interest rates and business expectations about inflation.
A perfectly competitive firm has total revenue and total cost curves given by:
TR = 100Q TC = 5,000 + 2Q + 0.2 Q2 a. Find the profit-maximizing output for this firm. b. What profit does the firm make?
Refer to Figure 2.1. At point D, demand is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) unit elastic. D) elastic, but not infinitely elastic. E) infinitely elastic.
Which of the following is likely to be a benefit of foreign investment in a developing country?
a. Domestic firms are subjected to foreign competition b. Labor-intensive industries grow quickly c. New technology is adapted d. The natural rate of unemployment falls to zero e. The rate of inflation declines