Systemic risks would be most prevalent at larger banks like Bank of America and Citibank.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 12-12. Consider a typical firm in a perfectly competitive industry that makes short-run profits. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
The elasticity of output with respect to capital
A) is the increase in output resulting from an increase in the capital stock. B) is the percentage increase in output resulting from a 1 % increase in the capital stock. C) is always greater than one. D) is the inverse of the elasticity of output with respect to labor.
Consider the following statements when answering this question
I. If the cost of producing each unit of output falls $5, then the short-run market price falls $5. II. If the cost of producing each unit of output falls $5, then the long-run market price falls $5. A) I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) I and II are false.
If equilibrium in the economy is merely a function of aggregate demand, the aggregate supply curve must be:
a. upward-sloping. b. downward-sloping. c. in the Keynesian region. d. vertical. e. at the full-capacity level.