Assumptions that output is fixed and factor prices have adjusted to reach the level of full employment are:
a. useful for long-run analysis.
b. necessary for short-run analysis.
c. unrealistic to the extent that economists should not make such assumptions.
d. always true and therefore useful both in the long run and short run.
Ans: a. useful for long-run analysis.
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The voting members of the Federal Open Market Committee are
A) all of the members of the Board of Governors and five of the presidents of the 12 Federal Reserve banks. B) only the members of the Board of Governors. C) the presidents of the 12 Federal Reserve banks and three members of the Board of Governors. D) all of the members of the Board of Governors and all of the presidents of the 12 Federal Reserve banks.
Asset prices in an economy are likely to fall if ________
A) firms' revenues rise B) labor supply falls C) labor demand increases D) investment falls
Originally considered by economist Robert Mundell, decades later, in 2001, Europe adopted a new common currency now known as:
A) the euroyen, ¥. B) the eurodollar, $. C) the europa, . D) the euro, €.
If the annual interest rate is 0 percent, the present value of receiving $210 in the next year is:
A. $200. B. $201. C. $221. D. $210.