It can be shown that average revenue and price are always equal.

Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?

A) Unemployment will rise. B) Prices will increase. C) Output will decrease. D) Short-run aggregate supply will shift to the right.

The coefficient of determination is defined as the:

A) ratio of the total sum of squared errors to the sum of squared errors. B) ratio of the regression sum of squares to the sum of the squared errors. C) ratio of the sum of squared errors to the total sum of squared errors. D) none of the above.