Automatic stabilizers occur ______________, and only offset part of the shifts in aggregate demand.

Answer the following questions true (T) or false (F)

1. Accounting costs exclude implicit costs. 2. If a firm is producing no output in the short run, then its total costs are zero. 3. In the short run, changes in output can only be brought about by a change in the quantity of variable inputs.

This graph represents the cost and revenue curves of a firm in a perfectly competitive market.According to the graph shown, the long-run output decision for this firm is:

A. Q2, P1. B. Q1, P2. C. Q1, P1. D. Q3, P3.