The long-run industry supply curve is made up of the zero-profit equilibrium levels of output as the industry expands due to entry of new firms.
Answer the following statement true (T) or false (F)
True
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A lower real interest rate, amount of consumer debt, and personal taxes ________ personal consumption expenditures
A) increase B) decrease C) have no effect on D) none of the above
Classical theory advocates ________ policy and Keynesian theory advocates ________ policy
a. fixed wages; flexible wages b. nonintervention; intervention c. active; nonstabilization d. active; passive
Long term unemployment causes all of the following except
a) depreciation of human capital b) reduced probability of reemployment c) reduced intensity of job search d) increased unemployment insurance replacement rates e) discouraged worker effects and labor market withdrawal
If the U.S. dollar depreciates in value relative to foreign currencies, then this will:
A. decrease aggregate demand and increase aggregate supply. B. decrease aggregate demand and aggregate supply. C. increase aggregate demand and aggregate supply. D. increase aggregate demand and decrease aggregate supply.