Suppose there has been an increase in investment. As a result, real GDP will ________ in the short run, and ________ in the long run

A) decrease; increase to its initial level B) increase; increase further
C) increase; decrease to its initial value D) decrease; decrease further

C

Economics

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Learning by doing will result in

A) an upward sloping long-run average cost curve. B) a larger long-run marginal cost than long-run average cost. C) a rotation in the isocost curves. D) lower long-run costs than short-run costs.

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A price ceiling is

A) the lowest price a seller can charge for a good without losing all her customers. B) a legal minimum price that can be charged for a particular good or service. C) a legal maximum price that can be charged for a particular good or service. D) the lowest price a buyer can pay for a good without having to report the purchase to the government.

Economics