If the isoquants in an isoquant map are downward sloping but bowed away from the origin (i.e., concave to the origin), then the production technology violates the assumption of:
A) technical efficiency.
B) free disposal.
C) diminishing marginal returns.
D) positive average product.
C
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The monetary base is smaller than the money supply
Indicate whether the statement is true or false
Oksana deposits $90,000 at Flynn Bank. Flynn Bank has a required reserve ratio of 15 percent. How much money could Oksana’s deposit potentially create?
a. $76,500 b. $90,000 c. $600,000 d. $13,500
Changes in GDP in the long run are determined primarily by
A) monetary policy. B) fiscal policy. C) demand. D) all of the above E) none of the above
Suppose that the current price level is 110, real GDP is $100 billion, and long-run aggregate supply is $95 billion. We can conclude that
A. aggregate demand will increase until both short-run and long-run aggregate supply equal $100 billion. B. the price level will fall and input prices will rise until real GDP pulls long-run aggregate supply up to $100 billion. C. input prices will rise until real GDP is $95 billion. D. the price level will fall until long-run aggregate supply shifts to $100 billion.