If a firm's average total costs fall as it produces a larger output,
a. average variable cost must also decline as output expands.
b. marginal cost must also decline as output expands.
c. average fixed cost must be less than average variable costs.
d. marginal cost must be less than average total cost.
D
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A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
When the money market is in equilibrium, the bond market is in equilibrium as well
a. True b. False
Commodity money cannot be used as a unit of account
a. True b. False Indicate whether the statement is true or false
The labels for the axes of an aggregate supply curve should be:
a. Aggregate demand for the vertical axis and real national output for the horizontal axis b. Real employment for the vertical axis and price level for the horizontal axis c. Real domestic output for the horizontal axis and price level for the vertical axis d. Real domestic output for the vertical axis and price level for the horizontal axis