In long-run equilibrium, employment is at full employment and unemployment is at the natural rate of unemployment
a. True
b. False
Indicate whether the statement is true or false
True
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A vertical demand curve has an elasticity of demand equal to zero.
Answer the following statement true (T) or false (F)
Unpredictable inflation can cause businesses to:
A. have a hard time planning future production. B. cease production until they know how to adjust for inflation. C. restrict output and stockpile inventory. D. increase production due to expecting future price level changes.
Imports are goods and services that are produced:
A. and consumed in other countries. B. in other countries and consumed domestically. C. and consumed domestically. D. domestically and consumed in other countries.
Recall the Application about choosing a price for drones based on a linear demand curve to answer the following question(s).Recall the Application. Suppose a firm that produces drones has a linear demand curve for its product, with a vertical intercept of $1,500. If the firm initially charged a price of $500 and then raised its price to $750, the firm's total revenue would ________ and total cost would ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decease