A firm will shut down permanently if total revenue is not sufficient to pay for total costs in the long run
a. True
b. False
Indicate whether the statement is true or false
True
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If the price level should increase in the near term due to decreases in the short-run aggregate supply, the result would be
A) demand-pull inflation. B) demand-pull recession. C) cost-push inflation. D) cost-pull expansion.
The factor of production that is always fixed in the short run is
a. the amount of raw materials b. the size of the physical plant c. the number of workers d. energy costs e. quantity of output
The position of a demand curve is unaffected by changes in the price of the good
a. True b. False Indicate whether the statement is true or false
In the above figure, what is the equilibrium level of real consumption spending?
A. $2.0 trillion B. $3.0 trillion C. $0.0 trillion D. $1.0 trillion