What pattern would you observe in an economy in which aggregate demand is increasing but in which long-run aggregate supply remained the same?
A. secular deflation
B. inflation accompanied by declines in real GDP
C. inflation accompanied by no change in real GDP
D. a decline in consumption spending
Answer: C
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Which of the following is true with regards to a long-run cost function?
a. The shape of the firm's long-run cost function is important in decisions to expand the scale of operations b. The long-run average cost curve is U-shaped c. The long-run average cost curve is flatter than the short-run average cost curve. d. The curve consists of the lower boundary of all the short-run cost curves e. All of the above
As a result of an increase in demand from D2 to D1 in Figure 36.4, ceteris paribus, the price of a $40,000 U.S. computer system, in terms of Japanese yen, would: =
A. Decrease in price by 200,000 million yen. B. Increase in price by 200,000 million yen. C. Increase in price by 800,000 yen. D. Decrease in price by 800,000 yen.
A statement about economic behavior or the economy that enables prediction of the probable effects of certain actions is known as a(n): (check all that apply)
a. economic hypothesis b. economic law c. normative economic statement d. economic principle
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $8.00; AVC = $5.00; MC = $8.00; MR = $7.00. The firm should
A. increase price. B. continue to produce its current output. C. increase output. D. decrease output.