Economic growth is best defined as
A) decreases in potential GDP.
B) increases in potential GDP.
C) rightward shifts of the AD curve.
D) rightward shifts of the SAS curve.
B
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Firm X's total fixed costs are $1,000. Its total variable costs of producing 100 units are $2,000, and its total variable costs of producing 200 units are $4,000. Which of the following will happen to firm X's average costs as it increases output from 100 to 200 units?
a. Average costs increase. b. Average costs decrease. c. Average costs remain constant. d. Average costs increase slightly.
Susan just sold her text books for $200 cash and deposited the cash she received in her checking account. This transaction has
A) increased the quantity of M1. B) decreased the quantity of M1. C) increased the quantity of M2. D) decreased the quantity of M2. E) not changed either M1 or M2.