An adverse supply shock results in an increase in the price level and an increase in Real GDP
Indicate whether the statement is true or false
False
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Taxes in the United States as a percentage of GDP are among the highest in the world
a. True b. False Indicate whether the statement is true or false
A firm's optimal input proportions may change if
a. input prices change. b. the relative marginal productivities of the inputs change. c. the firm's optimal output level changes. d. All of the above are correct.
Refer to the information provided in Table 22.4 below to answer the question(s) that follow.Table 22.4Aggregate Income (Y)Aggregate Consumption (C) 8 10 12 13 20 20 32 31Refer to Table 22.4. Which of the following consumption functions best fits the values in the table?
A. C = 5 + 0.8Y B. C = 4 + 0.9Y C. C = 8 + 0.5Y D. C = 3 + 0.75Y
If a firm is experiencing economies of scale, then as the firm's output rises, its average total cost ________.
A. becomes negative B. falls C. rises D. does not change