At low levels of output, the economy can expand with little or no increase in the overall price level because
A. people will be expecting the price level to fall.
B. at low levels of output the aggregate supply curve is negatively sloped.
C. there is excess supply so prices are kept low.
D. firms likely hold excess labor and capital, and production can be increased without causing input prices to increase.
Answer: D
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According to new growth theory,
A) growth in real GDP per capita occurs only if there are increasing returns. B) technological change is influenced by economic incentives. C) economic growth is determined by forces outside the control of the market system. D) centrally-planned economies are the most efficient.
Refer to the above table. Suppose the U.S. government (but not Europe) offers a $10 million subsidy?
What will be an ideal response?
The rule of reason was applied in the Alcoa case
a. True b. False Indicate whether the statement is true or false
A review of occupational distribution of population from time to time helps us to know the
A. rate of which the population grows B. number of people that makes up the labour force C. efficiency of the working population D. industries which are becoming less important E. number of people that are bot employed