Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to an increase in the aggregate demand curve would be:
A. a movement upward along the short-run aggregate supply curve.
B. a movement upward along the long-run aggregate supply curve.
C. a downward shift in the short-run aggregate supply curve.
D. a shift in both the aggregate demand curve and the short-run aggregate supply curve with a movement along the long-run aggregate supply curve.
Answer: A
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A steady-state equilibrium refers to:
A) an equilibrium in which the stock of physical capital remains constant over time. B) an equilibrium in which the inequality remains constant over time. C) an equilibrium in which the GDP per capita remains constant over time. D) an equilibrium in which the poverty rate remains constant over time.
Assume a firm is operating under conditions of pure competition and faces a marginal cost function that is everywhere below its average total cost
If the firm is producing where marginal revenue equals marginal cost will it be possible for it to make an economic profit? Explain.
In the balance of payments, financial transactions include all
a. transactions in which money changes hands. b. flows of financial investments between nations. c. net deficit items. d. net surplus items.
By definition, an industry with high concentration also is highly competitive.
Answer the following statement true (T) or false (F)