When long-run average cost decreases as output increases, there are definitely I. increasing marginal returns. II. economies of scale
A) only I
B) only II
C) both I and II
D) neither I nor II
B
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Both monetary policy and fiscal policy were used in response to the recession of 2007-2009
a. True b. False Indicate whether the statement is true or false
Which of the following have the same impact on the Fed's balance sheet?
A. An increase in loans by the Fed to banks and a decrease in foreign exchange reserves B. An open market purchase and an increase in loans by the Fed to banks C. An open market sale and an increase in foreign exchange reserves D. An open market purchase and a decrease in foreign exchange reserves
Adam Smith's theory of absolute advantage is based on the labor theory of value.
Answer the following statement true (T) or false (F)