If there are a large number of firms in a monopolistically competitive industry
A) long-run profit will be equal to zero.
B) the country in which the firms are located can be expected to export the goods they produce.
C) there will be barriers to entry that prevent addition firms from entering the industry.
D) the firms will converge production on a standardized product.
E) there will be a small number of firms that are very large and the rest will be very small.
A
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The crowding-out effect of higher interest rates can be avoided by
a. expansionary monetary policy. b. expansionary fiscal policy. c. contractionary monetary policy. d. decreasing taxes.
Which of the following about unemployment is true?
a. The unemployment rates of the major European economies were substantially lower than in the United States during the last decade. b. High unemployment rates over lengthy time periods are indicative of structural and regulatory factors that are exerting an adverse impact on the natural rate of unemployment. c. The natural rate of unemployment is unaffected by changes in the age composition of the labor force (for example, an increase in the relative number of youthful workers). d. Institutional changes such as an increase in the minimum wage may increase cyclical unemployment but will not affect the natural rate of unemployment.
If expected future incomes fall, this causes the nation's current:
a. Aggregate demand to fall, the average price level to fall, and real GDP to rise. b. Aggregate supply to rise, the average price level to rise, and real GDP to rise. c. Aggregate demand to rise, the average price level to rise, and real GDP to rise. d. Aggregate supply to fall, the average price level to rise, and real GDP to fall. e. Aggregate demand to fall, the average price level to fall, and real GDP to fall.
The BEA is the
A. Bureau of Educational Administration. B. Bureau of Educational Analysis. C. Bureau of Economic Alliances. D. Bureau of Economic Analysis.