In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a gradual shift to the
a. left of aggregate supply.
b. right of aggregate supply.
c. left of aggregate demand.
d. right of aggregate demand.
b. right of aggregate supply.
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Expectations are adaptive in ________
A) traditional Keynesian models B) the Lucas Model C) new Keynesian theory D) the real business cycle model
What is the total cost at the break-even quantity calculated above?
a. $750 b. $850 c. $950 d. $1050
When an independent relationship is graphed, the resulting line or curve is: a. upward-sloping
b. downward-sloping. c. vertical. d. horizontal.
When an economist says that the demand for a product has increased, this means that:
A. consumers are now willing to purchase more of this product at each possible price. B. the product has become particularly scarce for some reason. C. product price has fallen and, as a consequence, consumers are buying a larger quantity of the product. D. the demand curve has shifted to the left.