What is measured on the vertical axis when we draw a graph of long-run aggregate supply?
A) output of consumer goods B) real GDP
C) production of capital goods D) the price level
D
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Compared to the no-trade situation, when a country imports a good,
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses. b. domestic consumers lose, domestic producers gain, and the gains outweigh the losses. c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains. d. domestic consumers gain, but domestic producers lose an equal amount.
The short-run response of quantity demanded to a change in price is usually:
A. greater than the long-run response. B. the same as the long-run response. C. less than the long-run response. D. None of the statements is correct.
Firms in a perfectly competitive industry are producing goods efficiently in the long run if each is producing at the minimum point of the
A) AVC curve. B) MC curve. C) LAC curve. D) AFC curve.
If a perfectly competitive firm faces a price below its average total cost but above the shutdown point, it should stay open
a. True b. False Indicate whether the statement is true or false