If actual output exceeds potential output, the short-run aggregate supply curve shifts downward over time
Indicate whether the statement is true or false
FALSE
You might also like to view...
Which activity of the Fed would tend to increase the nation's money supply?
A) Sales of government bonds B) Lowering the discount rate C) Raising the required reserve ratio D) None of the above.
Economists believe that trade is necessary for prosperity because
a. every country lacks some vital resources that it can get only by trade. b. each country's climate makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. c. specialization permits large outputs and can produce economies of scale. d. All of the above are correct.
If the Fed decreases the nominal interest rate by 2 percent, how will the real interest rate change in the short run?
a. It will decrease by 1 percent. b. It will decrease by 2 percent. c. It will increase by 1 percent. d. It will increase by 2 percent.
OutputTotal RevenueTotal Cost0$0$501407428094312011741601425200172Refer to the above table. When the firm produces three units of output, it makes an economic:
A. loss of $3. B. profit of $40. C. profit of $3. D. profit of $17.