Increases in the burdens of government regulations can make production more costly for producers, shifting the short run aggregate supply curve left; it can also reduce potential output, shifting the long-run aggregate supply curve left

Which of the following expressions equals profit per unit of output?

a. MR - MC b. P - AVC c. MR - P d. P - ATC e. MR - ATC

The distinction between exogenous and endogenous variables is important because:

a. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Exogenous variables are therefore treated as shocks to the Three-Sector-Model. b. Exogenous variables are fixed by definition. c. Endogenous variables are fixed by definition. d. Exogenous variables are determined within the Three-Sector-Model while endogenous variables are not. Endogenous variables are therefore treated as shocks to the three markets. e. Endogenous variables are real factors while exogenous variables are nominal factors.