Why is the LRATC curve flatter than SRATC?
a. Short-run costs fluctuate more than long-run costs.
b. There is less difference in output in the long run.
c. There are more returns to scale in the short run.
d. The firm can make more adjustments in the long run.
d. The firm can make more adjustments in the long run.
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Which of the following questions would a macroeconomist most likely try to answer?
A. What stage of the business cycle is our economy currently in? B. Why do Broadway musicals and airlines have different price discrimination strategies? C. How much would marijuana consumption change if the market became legal? D. Should the 5-Hour Energy firm increase its distribution from national to international?
Which of the following will make the real-world money multiplier smaller than the theoretical formula?
a. Banks actually hold fewer reserves than technically required by the Fed. b. Banks actually make loans for more money than they have in excess reserves. c. Banks may keep some excess reserves rather than loan it all out. d. Both a. and b. above are correct.