Figure 10-3
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In Figure 10-3, we would expect the aggregate supply curve in graph (b) to eventually
A. shift to the right, eliminating the recessionary gap.
B. shift to the left, eliminating the inflationary gap.
C. become steeper in the upper portion, eliminating the inflationary gap.
D. become flatter in the upper portion, eliminating the recessionary gap.
Answer: B
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Most economists agree that the measured unemployment rate tends to ________ the unemployment problem
A) overstate B) understate C) accurately represent D) There is little agreement among economists regarding this issue.
Use the following cost table to answer the next question.OutputAverage Variable CostAverage Total CostMarginal Cost0---2$2.50$27.50$2.542.0014.501.562.0010.332.082.138.382.5102.307.303.0122.506.673.5143.006.576.0164.007.1311.0The table shows cost data for a perfectly competitive firm. If the market price for the firm's product is $6, what output level will the firm produce to maximize profits?
A. 16 B. 12 C. 0 D. 14