The short-run shutdown price occurs where price equals
A) MC.
B) AVC at any point.
C) AVC at the minimum point.
D) AFC at the minimum point.
C
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How does a rise in the foreign exchange rate affect aggregate demand in the United States? Explain your answer
What will be an ideal response?
In the above figure, the aggregate demand curve is AD2, so the long-run equilibrium level of real GDP is
A) $16 trillion. B) $16.5 trillion. C) more than $16 and less than $16.5 trillion. D) None of the above answers is correct.
A supply curve shows
A) the marginal cost of producing one more unit of a good or service. B) the marginal benefit from buying one more unit of a good or service. C) the quantities sold at different prices. D) the total cost of producing different quantities of a good or service.
Which of the following statements is correct?
A) The Fed has difficulty covering its normal expenses, but is reluctant to ask Congress for money. B) The Fed is dependent on the annual appropriations it receives from Congress. C) The Fed's profits are substantial, even when compared to the largest U.S. corporations. D) At one time the Fed made substantial profits, but falling interest rates have greatly reduced them.