Which of the following is not true of an economic expansion?
a. The economy is overheated.
b. There is too much spending.
c. Production exceeds equilibrium output.
d. The aggregate expenditure line is too low to create an intersection at full-employment output.
e. Unemployment will be unusually low.
D
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In the figure, curves 1, 2, 3, and 4 represent the:
A. ATC, MC, AFC, and AVC curves respectively.
B. MC, AFC, AVC, and ATC curves respectively.
C. MC, ATC, AVC, and AFC curves respectively.
D. ATC, AVC, AFC, and MC curves respectively.
Suppose Michigan’s NOX abatement standard for existing (E) sources is 4 units and the EPA's standard for new (N) sources is 10 units and that MACE = 1.8AEand MACN = 1.2AN. To meet the same combined abatement level of 14 but in a cost-effective manner, the standards for each should be
a. AE = 7; AN = 7 c. AE = 5.6; AN = 8.4 b. AE = 4.8; AN = 7.2 d. none of the above