In the long run, total spending only influences:
A. actual output.
B. potential output.
C. inflation.
D. productive capacity.
Answer: C
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You consume only steak and lobster. Your income effect from a drop in the price of lobster is measured by a movement along your indifference curve between steak and lobster
Indicate whether the statement is true or false
The key prediction of the Solow model adapted to include technological change ________ been born out, i.e. with a few exceptions convergence ________ a reality
A) has not, is not B) has not, is C) has, is not D) has, is
An example of a standardized good is:
A. cereal. B. iron. C. soda. D. pizza.
The long run is referred to as a planning horizon because:
a. the firm has committed to a fixed quantity of at least one resource and the other resources are variable. b. the manager has selected the size of the firm that appears to be the least profitable and does not have the option of selecting any other plant size. c. the firm has not committed to a fixed quantity of any resource and has all options available to it. d. the manager has selected a scale of production. e. the firm is operating along a specific average-cost curve.