The shape of the short-run average total cost curve is a result of
A) economies of scale.
B) diseconomies of scale.
C) the law of diminishing marginal product.
D) falling profits.
Answer: C
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According to this Application, a study of municipalities in Latin and South America found that a one degree Celsius rise in temperature was associated with
A) no measurable change in per capita income. B) a decline in municipal per capita income. C) a small decline in real income and a small increase in per capita real income. D) a slight increase in municipal per capita income.
If the economy is growing beyond potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) oil prices. B) taxes. C) government purchases. D) the money supply and a decrease in interest rates.