If potential output exceeds actual output, ________ shifts downward over time.
A. the short-run AS curve
B. the short-run AD curve
C. the long-run AS curve
D. the long-run AD curve
Answer: A
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A market situation where a small number of sellers compose the entire industry is called: a. monopolistic competition. b. monopoly
c. oligopoly. d. perfect competition.
Assume that the coefficient of elasticity of product demand is 0.1 in the food and beverages (F&B) industry and is 2.3 in the oil and gas (O&G) industry. Other things equal, labor demand will be
a. relatively inelastic in both F&B, and O&G industries. b. relatively elastic in both F&B and O&G industries. c. more elastic in O&G industry than in F&B. d. more elastic in F&B industry than in O&G.
In recent years, people have benefited from greater amounts of leisure time. This trend
What will be an ideal response?
At any quantity of output below the intersection of the marginal revenue and marginal cost curves:
A. MR is higher than MC. B. MC is higher than MR. C. ATC is lower than AVC. D. the firm would lose profits producing the units.