Which of the following observations is true?
a. In the long run, more costs become variable.
b. Fixed costs can be completely varied if the time period is sufficient.
c. Fixed costs arise when some types of inputs can be bought only in big batches.
d. Variable costs arise when inputs have a large productive capacity.
a
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An increase in the demand for labor will ________ wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
In long-run macroeconomic equilibrium, the
A) real wage rate has adjusted so that the economy is on the short-run aggregate supply curve but not on the long-run aggregate supply curve. B) long-run aggregate supply curve has shifted in response to a money wage rate increase so that potential GDP equals real GDP. C) aggregate demand curve adjusts to the point where the long-run aggregate supply curve and the short-run aggregate supply curve intersect. D) None of the above answers is correct.