Moving along the potential GDP line, the money wage rate changes by the same percentage as the change in the price level so that the real wage rate
A) stays at the full-employment equilibrium level.
B) increases.
C) might either increase or decrease.
D) decreases.
E) stays the same, though not necessarily at the full-employment equilibrium level.
A
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In the figure above, a firm is operating at point A on the graph. At point A, the firm's average cost curve
A) has negative slope. B) has positive slope. C) is horizontal. D) is vertical.
The most volatile component of total investment spending is ________
A) construction spending by firms B) spending by firms on equipment C) residential construction by households D) inventory investment
If the long-run supply curve is horizontal, we know that this is
A. a decreasing-cost industry. B. a constant-cost industry. C. an increasing-cost industry. D. a situation in which some input prices change as firms enter and exit the industry.
Which form of business organization has the advantage of being a legal person in itself?
a. sole proprietorship b. partnership c. corporation d. oligopoly