As world economies start to recover from the 2008 financial crisis and firms expect profits to increase
A) the price level in the U.S. will decrease as firms increase investment.
B) the U.S. short-run aggregate supply curve immediately will shift rightward.
C) investment will increase and there will be a movement up along the aggregate demand curve.
D) both investment and aggregate demand will increase.
D
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Why is real GDP a more accurate measure of the level of production in an economy than nominal GDP? Explain with an example
What will be an ideal response?
Assume SeatComfy Inc. manufactures table and chairs with the following total cost function, TC=10,000+10Q+0.1Q2, where Q=quantity of chairs produced. If SeatComfy can sell as many chairs as it wishes at the current market price of $45, how many chairs should it produce to maximize its short-run profits?
A. 45 B. 175 C. 350 D. 700