Author Question: The dynamic aggregate demand and aggregate supply model assumes that potential GDP increases over ... (Read 161 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?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

For a complete list of videos, visit our video library