The effect of diminishing marginal returns outweighing the effect of spreading out the fixed costs is illustrated by the ________ average cost curve ________.
A. long-run; decreasing
B. long-run; increasing
C. short-run; decreasing
D. short-run; increasing
Answer: D
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
If the long-run supply of rice is perfectly elastic, then
A) as people's incomes rise, the quantity of rice supplied decreases. B) as the price of corn falls, the quantity of rice demanded decreases. C) in the long run, a large rise in the price of rice causes no change in the quantity of rice supplied. D) in the long run, an increase in the demand for rice leaves the price of rice unchanged.
We call a group a team if the total output produced by the group can be separated into individual outputs
Indicate whether the statement is true or false
What should be the impact on aggregate expenditures from an increase in the real interest rate?
A. It should increase B. The impact is indeterminate C. It should decrease D. It should remain constant