In the context of aggregate supply, the short run is defined as the period during which
a. some prices are set by contracts and cannot be adjusted.
b. prices can change, but neither aggregate supply nor aggregate demand can shift.
c. individuals have sufficient time to modify their behavior in response to price changes.
d. quantity changes cannot occur in response to changes in relative prices.
A
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The working-age population of people over the age of 16 can be divided into two groups, people
A) in the labor force and people looking for work. B) with a job and people actively seeking a job. C) looking for work and those in the U.S. Armed Forces. D) in the labor force and people with a job. E) in the labor force and people who are not in the labor force.
Equilibrium is the condition that exists
A. when quantity demanded equals quantity supplied. B. when the demand curve intersects the price axis. C. when the demand curve intersects the quantity axis. D. whenever there is no government intervention in the market.
Chocolate prices are determined by the inter-action of supply and demand. Any significant decrease in input costs (costs of production) for this type of product will, all other things remaining the same:
(a) Shift the supply curve to the right. (b) Decrease the equilibrium price. (c) Shift the demand curve for chocolate to the left. (d) Cause both (a) and (b) above.
The total fixed cost remains constant as which of the following varies (as depicted on the x-axis of the relevant graph)?
A. cost of resources B. time C. output in a given period of time D. profit