A change in government purchases has the greatest effect on the economy in the short run when _____.
a. the aggregate demand curve is relatively flat
b. the aggregate demand curve is relatively steep.
c. the short-run aggregate supply curve is relatively flat.
d. the aggregate demand curve is vertical.
e. the short-run aggregate supply curve is vertical.
c
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Regulation that is based upon the cost of providing the good or service is known as
A) rate-of-return regulation. B) cost-of-service regulation. C) social regulation. D) deregulation.
The quantity demanded is always equal to the quantity supplied
Indicate whether the statement is true or false
Suppose the quantity demanded is 5 units when the price is $1.00. If the price rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand is
A) 0.5. B) 0.75. C) 1.33. D) 2.00.
How would you choose to estimate a production function for a single plant? How would you choose to estimate a production function for a number of firms in an industry? Explain
What will be an ideal response?