When the Economy Is on the Flat Part of the AS Curve

question 114

True/False

When the economy is on the flat part of the AS curve, there is very little crowding out of planned investment.

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Definitions:

Profitable Product

An item that brings in more income than the expenses related to its production and sale.

Contribution Margin

The amount remaining from sales revenue after variable costs have been subtracted, which contributes to covering fixed costs and generating profit.

Selling Price

is the amount a customer pays to purchase a product or service.

Annual Production

The total quantity of goods or services produced by a company or facility within a one-year period.