Along the aggregate supply curve
A) the horizontal part represents a situation where the economy is operating above full employment levels.
B) inflation would be a primary concern along the horizontal part of the aggregate supply curve.
C) idle resources, such as labor and capital, would be a feature of the vertical section of the aggregate supply curve.
D) the horizontal section of the aggregate supply curve represents the limit of production.
E) the middle, upward-sloping part of the aggregate supply curve would be associated with a growing economy that experienced increased prices from resources that are becoming relatively scarce.
E
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If the Fed raises the interest rate, this will ________ inflation and ________ real GDP in the short run
A) reduce; lower B) reduce; raise C) increase; raise D) increase; lower
Which of the following best describes marginal cost?
a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced. c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies, and that must be paid even if output is zero.