Which of the following statements is true?
A) An increase in the money wage rate shifts the AS curve rightward.
B) A fall in the price level shifts the AS curve leftward.
C) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward.
D) An increase in the money wage rate increases potential GDP.
E) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward.
C
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The firm's production function is the relationship between the ________ and ________
A) output produced; the quantities of all inputs B) maximum output attainable; the quantity of variable inputs C) possible range of maximum output; the quantity of variable inputs D) maximum output attainable; the quantities of both labor and capital
In order to avoid principal-agent problems, McDonald's uses all but one of the following franchising tactics. Which is the exception?
a. It does not advertise for franchisees. b. Franchisees must put up 40 percent of the investment themselves. c. Franchisees must undergo a preliminary training period, followed by a 12- to 18-month training program. d. Franchisees must already have another fast-food restaurant franchise. e. Franchisees are required to work full-time daily in their restaurant.