Beginning from a Position of Long-Run Equilibrium at the Full-Employment

question 5

Multiple Choice

Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to an increase in the aggregate demand curve would be:

• A) a movement upward along the short-run aggregate supply curve.
• B) a movement upward along the long-run aggregate supply curve.
• C) a downward shift in the short-run aggregate supply curve.
• D) a shift in both the aggregate demand curve and the short-run aggregate supply curve with a movement along the long-run aggregate supply curve.
• E) no change, since the economy is already in equilibrium.

Understand the steps and purposes of job instruction training.

Recognize the importance and methods of on-the-job training (OJT) and why it's favored, especially by SMEs.

Identify various OJT methods including mentoring, coaching, performance aids, and apprenticeships.

Acknowledge the role and impact of apprenticeship programs and the Standards Red Seal Program in Canada.

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Definitions:

Profit Maximizing Price

The price level at which a business can achieve the highest profit possible, based on its production costs and demand for its products.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded.

Profit

Difference between total revenue and total cost.

Marginal Revenue

The additional income earned from the sale of one more unit of a product or service.