In the long run, the output level is determined by
A. aggregate demand.
B. aggregate supply.
C. household income.
D. the government.
Ans: B. aggregate supply.
You might also like to view...
When a prisoners' dilemma game is repeated a finite number of times (T)
A) cooperation unravels during the first round of the game, resulting in the static game Nash equilibrium. B) cooperation continues until the T-2 round, where the players will switch to a non-cooperative Nash equilibrium. C) firms cooperate and achieve the collusive Nash equilibrium for all rounds. D) None of the above.
Good Boy Super Treats produces healthy treats for dogs. At its current advertising level, Good Boy Super Treats marginal cost of advertising is $1.3 million and their marginal benefit is $1 million. Which of the following is true?
A) The firm should increase the amount of advertising to increase its net profit. B) The firm should reduce the amount of advertising to increase its net profit. C) If the firm decreases the amount of advertising, its net profits will decrease. D) The firm is currently maximizing its net profit.
A college student is thinking about running an ice-cream truck over the summer. Which of the following would likely be an ongoing expense of the business?
A. The cost of the truck B. The cost of the gasoline used C. The cost of ice cream scoopers D. None of these is an ongoing expense.
In the short-run macro model, a decrease in the money supply will
a. move the economy to the right along the aggregate expenditure line b. move the economy to the left along the aggregate expenditure line c. shift the aggregate expenditure line upward d. shift the aggregate expenditure line downward e. not affect the aggregate expenditure line