Fixed costs of production in the short run
A. are low in proportion to variable costs in the short run.
B. are a function of the level of variable costs.
C. increase as the firm produces more output.
D. cannot be reduced by producing less output.
Answer: D
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In comparison to the situation in the late 1970s, the United States experienced lower nominal interest rates and higher real interest rates in the late 1990s
a. True b. False Indicate whether the statement is true or false
If the government were to decrease its spending, it would expect aggregate demand to:
A. rise, and thus GDP to fall. B. rise, and thus GDP to rise. C. fall, and thus GDP to rise. D. fall, and thus GDP to fall.
The unemployment rate that is consistent with full employment is known as __________________.
Fill in the blank(s) with the appropriate word(s).
Productivity
A. Falls when the value of output rises relative to the cost of inputs. B. Falls when factors of production cost more. C. Rises when the ratio of output to input increases. D. Rises when the value of output rises relative to the cost of inputs.