Economies of scale is a short-run phenomenon
Indicate whether the statement is true or false
F
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In the long run, a higher government deficit does not affect equilibrium real Gross Domestic Product (GDP), so that continuous increases in the government deficit will
A) lead to greater tax revenues. B) reduce spending on privately provided goods and services. C) reduce the price level. D) increase the unemployment rate.
Refer to the table above. When does diminishing marginal returns to capital set in?
A) When the second machine is used B) When the third machine is used C) When the fourth machine is used D) When the fifth machine is used
The short-run Phillips curve will tend to shift during any period when: a. aggregate supply changes
b. real wages or input prices change because of changes in the supplies of labor or other inputs. c. inflationary expectations change. d. all of the above
Which of the following is a problem associated with judging competitiveness by structure?
A. It is difficult to determine the relevant market and the relevant industry necessary to identify the structural competitiveness of any industry. B. It requires that each action of a firm be analyzed on a case-by-case basis, which is very time- consuming and expensive. C. Structure can be a predictor of future performance. D. Whether the actions of a firm can be considered appropriate competitive behavior depends on the circumstances.