16. A firm has a U-shaped LRATC curve that has a minimum value of $17 at a quantity of 250. Which of the following are true?I. There are Economies of Scale at a quantity of 200II. LRATC is rising at an output of 300.III. The short run average cost of producing 250 units of output is less than $17a) Only I and II are trueb) All three are truec) Only I is trued) Only II is truee) Only III is true
17. Which of the following are true about the way the classical view of monetary policy impacts the quantity equation of money?I. Real GDP is unaffected by the money supplyII. Nominal GDP increases with the money supplyIII. Velocity is unaffected by the money supply.
18. Which of the following represents a reason AD is downward sloping?I. Inflation in the US makes consumers buy more foreign goodsII. Inflation makes producers miss that the increased price of their output is not a real increase in price.III. Inflation decreases the real wealth of consumers.
19. A worker is fired from their job because of downsizing. He decides to stay home and take care of his kids. Which of the following is true?