Sources of reduced volatility of demand shocks include all of the following EXCEPT
A) smaller ups and downs of military spending.
B) residential construction.
C) inventory changes.
D) saving rates.
D
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Which of the following would NOT shift the U.S. aggregate demand curve?
A) a change in income in Canada B) a change in the quantity of capital in the United States C) an expectation that inflation will be lower in the future D) U.S. monetary and fiscal policy
If the market price is $5 and you are currently producing at a level where average total cost is $3 and falling, you should
a. b or c, it doesn't matter b. shut down c. produce only enough to cover variable costs d. produce where MR = MC e. produce until the average total cost and average revenue are equal
The decision in the U.S. Steel case:
A. reflected a behavioralist approach to antitrust. B. reflected a structuralist approach to antitrust. C. divided U.S. Steel into a number of smaller companies. D. ruled that U.S. Steel had engaged in illegal price-fixing.
What is minimum efficient scale? What is likely to happen in the long run to firms that do not reach minimum efficient scale?
What will be an ideal response?