What is the shape of the average total cost curve for a firm in the short run?
a. U-shaped.
b. A horizontal line.
c. A vertical line.
d. A curve that slopes upward to the right.
Question 2
According to Keynes, if private sector demand is insufficient to maintain full employment, the government should:
a. make the economy's natural transition to a lower level of employment as easy as possible.
b. shock the economy with an increase in aggregate demand.
c. reduce aggregate supply to reduce inflation.
d. print money to promote consumer spending.
e. take steps to increase aggregate supply in an economy.
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