Which of the following statements is TRUE?
A) The long-run aggregate supply curve is upward sloping.
B) The long-run aggregate demand curve is upward sloping.
C) The short-run aggregate supply curve is vertical.
D) The long-run aggregate supply curve is vertical.
D
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Everything else held constant, when actual output exceeds the natural rate of output ________ aggregate supply ________
A) short-run; decreases B) short-run; increases C) long-run; increases D) long-run; decreases
In a perfectly competitive market equilibrium,
a. each firm's marginal cost is equal to the market price b. each consumer's marginal utility is equal to the market price c. each firm's marginal cost is equal to each consumer's marginal utility d. price equals minimum marginal cost e. price equals minimum average total cost