Fed Chairman Alan Greenspan managed to keep the rate of inflation ...

[drink]

Fed Chairman Alan Greenspan managed to keep the rate of inflation low as the economy was growing at a brisk pace by setting and hitting low money supply growth rate targets.
 
  Indicate whether the statement is true or false

Question 2

Comment on the following statement: The shape of the long-run average cost curve is determined by diminishing returns.
 
  What will be an ideal response?

[mistyjohnson]

Answer to Question 1

FALSE

Answer to Question 2

The statement is false. Diminishing returns occurs in the short run, as the firm adds units of a variable input to a fixed input. In the long run, there are no fixed inputs. The shape of the long-run average cost curve depends on how costs are affected by changes in the firm's scale of production.

[drink]

Thank you

[mistyjohnson]

No problemo