Which of the following statements is TRUE about the long-run and short-run aggregate supply curve in the classical model?
A) The long-run aggregate supply curve is vertical, and the short-run curve is horizontal.
B) The long-run aggregate supply curve is not defined, and the short run curve is vertical.
C) The long-run and short-run curves start out horizontal and eventually become vertical.
D) The long-run curve is vertical, and there is no short-run curve since all adjustments occur quickly.
D
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Assuming all else equal, if ________, net exports are positive
A) exports exceed transfer payment B) imports exceed exports C) imports exceed transfer payments D) exports exceed imports Lawland imports cell phones worth $1,000 billion, and exports coffee worth $820 billion in a year.
If one is producing well within a production possibilities frontier, they are
A) using resources to the best of their ability. B) using resources at the lowest opportunity cost. C) using resources in an inefficient way. D) using resources in a way that maximizes their comparative advantage.
Refer to Scenario 10.8. Suppose that the regulatory agency sets your price where average revenue equals average cost. How much profit will Adriana make?
A) She will lose money and will go out of business. B) She will break even. C) She will make a profit. D) none of the above
A 10 percent rise in the price of housing reduces the quantity demanded of housing by 3 percent. We can conclude that the demand for housing is:
a. inelastic. b. elastic. c. unitary elastic. d. perfectly elastic.