Economies of scale occur when there are
A) decreases in long-run average costs resulting from increases in output.
B) no changes in long-run average costs when output increases.
C) increases in long-run average costs when output increases.
D) decreases in output resulting from decreases in input.
Answer: A
Economics
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Inflation leads to: a. higher menu costs
b. an increase in the propensities to consume. c. an increase in the potential gross domestic product. d. an increase in the effectiveness of monetary policy.
Economics
To decrease the money supply, the Fed may
A) buy government securities in the open market. B) decrease the discount rate. C) increase the required reserve ratio. D) b and c E) all of the above
Economics