Better short-run use of current capacity
A. Shifts the aggregate supply curve outward, while long-run economic growth moves the economy up the aggregate supply curve.
B. Increases capacity, while long-run economic growth increases capacity utilization.
C. Moves the economy closer to the production possibilities curve, while long-run growth shifts that curve outward.
D. And long-run growth both shift the aggregate supply curve outward.
Answer: C
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If, due to rising demand, the price of cotton rose 10 percent while the prices of other goods and services rose an average of 15 percent,
a. the relative price of cotton has risen and one would expect the output of cotton to rise as a result. b. the relative price of cotton has risen and one would expect the output of cotton to fall as a result. c. the relative price of cotton has fallen and one would expect the output of cotton to rise as a result. d. the relative price of cotton has fallen and one would expect the output of cotton to fall as a result.
Homeowners
A. are subject to double taxation. B. benefit from several loopholes. C. have no particular advantages in the tax system. D. must pay tax on the “income” of living in a house.
The best measure of an economy's standard of living is output per capita
Indicate whether the statement is true or false
When estimating a short-run average variable cost function,
A. the intercept must be forced to equal zero. B. the cost data must be inflation-adjusted. C. at least one input must have been constant during the period in which the data were collected. D. both b and c E. all of the above