Which one of the following statements is TRUE?
A. In the short run, the level of output is determined by demand.
B. In the long run, the level of output is determined by demand.
C. In the long run, the aggregate supply curve is horizontal.
D. Where aggregate demand and aggregate supply intersect is always the full-employment level of output.
Answer: A
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If the government-imposed price of corn is greater than the market price,
a. the quantity of corn supplied will exceed the quantity of corn demanded. b. the quantity of corn supplied will be less than the quantity of corn demanded. c. the demand curve for corn will shift to the right. d. the supply curve of corn will shift to the right.
Refer to the graph below. The long-run average change in real GDP is shown by
a. the Growth trend line.
b. the contraction.
c. the expansion.
d. the peak.
Suppose Sun Bakery sells cupcakes and buns, using various equipment and labor to make and deliver its products. Which of the following costs is a variable cost for Sun Bakery?
a. The money paid for its monthly electricity bill b. The money paid as rent on the bakery space c. The money paid to purchase a new mixer d. The money paid to purchase a delivery van
Economic cost differs from accounting cost because accountants do not consider implicit costs.
Answer the following statement true (T) or false (F)