How will a change in productivity increase or decrease aggregate supply?
What will be an ideal response?
If productivity increases, this change will lead to a decrease in per-unit production costs. The decline in per-unit production costs increases aggregate supply. If productivity decreases, this change will lead to an increase in per-unit production costs. The increase in per-unit production costs decreases aggregate supply.
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In which of the following cases is the slope of a line positive?
A) As x increases, y increases. B) As x increases, y decreases. C) As x increases, y remains the same. D) As x increases, y equals a positive number.
What is the formula you should use to determine a bank account's future value in one year?
A) Future value equals the present value multiplied by one plus the rate of interest in decimals. B) Future value equals the present value divided by one plus the rate of interest in decimals. C) Future value equals the present value plus the rate of interest. D) Future value equals the present value minus the rate of interest.
When should parties be allowed to breach a contract?
The economy's current rate of interest is 10 percent and a firm has $100,000 of owner-invested capital. Its total revenue is $50,000 and the firm's explicit costs are $30,000. From this we know that this firm's
A. economic profit is -$10,000. B. accounting profit is -$500. C. economic profit is $10,000. D. accounting profit is $50,000.