____________________ is when a firm is able to produce along its expansion path

Fill in the blank(s) with the appropriate word(s).

Answer: LR cost minimization

Economics

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Computer chips are a normal good. Suppose the economy slips into a recession so that income falls. As a result, the demand for computer chips ________ so that the price of a computer chip ________

A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls E) decreases; does not change

Economics

Refer to the diagram above. The straight line E drawn through the wavy lines would provide an estimate of the:

a. Recovery trend b. Recession fluctuation c. Natural rate of unemployment d. Economic growth trend

Economics