Which of the following macroeconomic variables would likely be affected by a fiscal policy?
a. The nominal interest rate
b. The exchange rate
c. The discount rate
d. Employment
e. Money supply
Question 2
If a firm enlarges its factory size and realizes higher average (per unit) costs of production then:
a. it has experienced economies of scale.
b. it has experienced diseconomies of scale.
c. it has experienced constant returns to scale.
d. the long-run average cost curve slopes downward.
e. the long-run average cost curve shifts upward.
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