Author Question: The dynamic aggregate demand and aggregate supply model assumes that potential GDP increases over ... (Read 163 times)

EAugust

  • Hero Member
  • *****
  • Posts: 550
The dynamic aggregate demand and aggregate supply model assumes that potential GDP increases over time.
 
  Indicate whether the statement is true or false

Question 2

If the fixed costs for a firm rise what will be the impact on the marginal cost, average variable cost and average total cost curves? Explain.
 
  What will be an ideal response?



samiel-sayed

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

TRUE

Answer to Question 2

There will be no impact on either the marginal cost or average variable cost curves. The average total cost curve will shift up since the average fixed costs will have rise as well.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

There are more bacteria in your mouth than there are people in the world.

For a complete list of videos, visit our video library