An increase in labor productivity shifts the

A) AD curve rightward.
B) AD curve leftward.
C) short-run aggregate supply (SRAS) curve leftward.
D) SRAS curve rightward.
E) none of the above


D

Economics

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Which of the following is most likely to be a fixed input in the short run for Joe's Garage?

a. the grease used to lubricate cars b. the part-time labor employed to repair cars c. the inventory of replacement parts d. the electricity used to heat and light the garage e. the garage used to repair cars

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Which type of price is an implicit price of an action whose value is measured in opportunity costs?

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Eric provides cheese (H) and milk (M) to the market with the following total cost function: C(H, M) = 10 + 0.4H2 + 0.2M2. The prices of cheese and milk in the market are $2 and $5 respectively. Assume that the cheese and milk markets are perfectly competitive. What output of milk maximizes profits?

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Economics