Refer to the diagram, which relates to Firm A. Which of the following would shift A's average total cost curve from ATC 1 to ATC 2 ?
A. Replacement of old equipment with new, more productive equipment embodying technological advance.
B. A decrease in the incomes of A's customers.
C. A move along A's total product curve (not shown).
D. The increase in the price of one of the major inputs used to produce A's product.
A. Replacement of old equipment with new, more productive equipment embodying technological advance.
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According to the new classical view, when the actual price level is greater than the expected price level
A) aggregate output is above the full employment level. B) aggregate output is below the full employment level. C) the aggregate supply curve will slope downward. D) the coefficient a is equal to zero.
A change in demand cannot be caused by a change in:
a. tastes. b. population. c. the prices of other goods. d. expectations of future prices. e. the price of the good itself.