If the quantity of goods and services produced in an economy decreases,
A) it may be possible for nominal GDP to increase.
B) real GDP will certainly increase.
C) nominal GDP will certainly decrease.
D) it may be possible for real GDP to increase.
A
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In monopolistic competition, the entry of new firms
A) shifts existing firms' demand curves rightward. B) shifts existing firms' demand curves leftward. C) only results in a movement along the existing firms' demand curves. D) has no effect on the existing firms' demand curves. E) shifts existing firms' supply curves rightward.
A group of friends recently started manufacturing specialty T-shirts. The business has grown rapidly, with monthly production up from 50 to 250 in the first 6 months. During this same period, average production cost has been cut in half
The firm's long-run average cost curve over this range of output A) is downward sloping. B) is upward sloping. C) is horizontal. D) may be any of the above.