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 below potential GDP.
B) aggregate demand will increase.
C) GDP will be above potential GDP.
D) GDP will be equal to potential GDP.
Answer: A
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The term "laissez faire" was given to a system of free markets by
a. twentieth-century American economists. b. a seventeenth-century Scottish economist. c. eighteenth-century French economists. d. nineteenth-century Italian economists.
Consumer surplus does not exist because some consumers cannot afford to purchase the product at all.
Answer the following statement true (T) or false (F)
When the 2010 Patient Protection and Affordable Care Act is fully implemented, it will
a. set the prices (reimbursement rates) for more than 7,000 . different medical procedures. b. increase the supply of doctors and other medical services. c. increase the supply of doctors and other medical services. d. reduce the share of health care expenses paid for by a third party, which will increase the incentive of both consumers and medical providers to economize. e. All of the above are true.
The smaller the mpc, the ________ the income-expenditure multiplier and the ________ the effect of a change in autonomous spending on short-run equilibrium output.
A. larger; smaller B. larger; larger C. smaller; larger D. smaller; smaller