If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium,
A) GDP will be above potential GDP. B) aggregate demand will increase.
C) GDP will be below potential GDP. D) GDP will be equal to potential GDP.
C
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A firm is more likely to produce its own input if all of the following are true except which one?
A) The firm has trade secrets. B) The firm is concerned about the hold-up problem. C) The firm experiences diseconomies of scale when producing the input. D) The transportation cost of the input is expensive.
Rent seeking refers to unproductive activity in the pursuit of profit
a. True b. False Indicate whether the statement is true or false
Refer to the graphs shown. Higher costs of production combined with an expectation on the part of consumers of higher prices in the future would result in the shifts depicted in:
A. a. B. b. C. c. D. d.
A $70 price tag on a sweater in a department store window is an example of money functioning as a:
A. unit of account. B. standard of deferred payments. C. store of value. D. medium of exchange.