Are the short-run and long-run average cost curves U-shaped for the same reason? Explain
What will be an ideal response?
The short-run average cost curve is U-shaped because of the law of diminishing returns. The long-run supply curve is U-shaped because of diseconomies of scale.
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The debt held by the people themselves neither adds to nor subtracts from national production or consumption. That neutrality, however, doesn't rule out complications
Indicate whether the statement is true or false
The purchasing power parity theory is not a good explanation of how nominal exchange rates are determined in the short run because:
A. there is no evidence that low inflation is associated with less rapid nominal exchange rate depreciation. B. most goods and services are traded internationally and are standardized. C. most nominal exchange rates are fixed and foreign exchange markets do not bring the supply and demand for currencies into equilibrium. D. many goods and services are not traded internationally and not all internationally-traded goods are standardized.