If Potential Output Exceeds Actual Output, the Aggregate Demand Curve

question 151

True/False

If potential output exceeds actual output, the aggregate demand curve shifts downward over time.

Identify the components of total revenue and total cost to determine profit.

Understand opportunity costs and how they influence business decisions.

Identify the normal rate of return and its importance in economic profit calculations.

Analyze the impact of production and pricing decisions in perfectly competitive markets.

---

Definitions:

"Don't-Ask-Don't-Tell"

A U.S. policy, in effect from 1993 to 2011, that barred openly gay, lesbian, or bisexual individuals from military service, but also prohibited military officials from inquiring about service members' sexual orientation.

Ethnic Group

A community or population made up of people who share a common cultural background, heritage, language, or lineage.

Latino Americans

Americans with cultural, historic, or ancestry ties to Latin America, including those from Central and South America, and the Caribbean.

Anglo Americans

People in the United States who are descendants of English settlers or identify culturally with England.