The short run is the time period during which
A. all of the firm’s costs are fixed.
B. the value of the firm’s assets starts to decay.
C. the firm can adjust all inputs freely.
D. some of the firm’s input decisions are constrained by previous commitments.
Answer: D
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According to the globalized AS/AD model, expansionary monetary policy shifts the AD curve to the right and:
A. shifts potential output to the right. B. has no effect on goods inflation. C. increases goods inflation. D. shifts potential output to the left.
A monopolist
A. can raise its price without losing any sales because it is the only supplier in the market. B. can earn a greater than normal rate of return in the long run. C. always charges a price that is higher than marginal revenue. D. both a and b E. both b and c
The real growth rate is calculated by
A. the BLS calculating price level changes and population changes. B. the BEA using nominal rates to reflect the GDP. C. the BEA adjusting the GDP for inflation. D. the BLS adjusting the GDP per capita for inflation.
The GDP deflator measures how prices change over time.
Answer the following statement true (T) or false (F)