When the price level falls,
A) there is a movement upward along the AS curve.
B) both the potential GDP line and the AS curve shift leftward.
C) the AS curve shifts leftward but the potential GDP line does not shift.
D) the AS curve shifts rightward but the potential GDP line does not shift.
E) there is a movement downward along the AS curve.
E
You might also like to view...
Why are suburban stores more likely than downtown stores to provide free parking for their customers?
A) Fewer people drive their cars to downtown stores than to suburban stores. B) Suburban people are more addicted to the automobile than are inner-city residents. C) The cost of using land is higher in the downtown area. D) There is not much land available in the downtown area.
Implicit costs can be defined as
A) the non-monetary opportunity cost of using the firm's own resources. B) the deferred cost of production. C) total cost minus fixed costs. D) accounting profit minus explicit cost.