The demand for the product of a competitive price-taker firm is:
a. perfectly inelastic.
b. perfectly elastic.
c. greater than zero but less than one.
d. dependent on the availability of substitutes for the firm's product.
b
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
The share of GDP taken by taxes has increased dramatically since the 1960s.
Answer the following statement true (T) or false (F)
If the measured unemployment rate is 6% and the natural unemployment rate is 4%, then
A. cyclical unemployment is 2%. B. frictional unemployment is -2%. C. structural unemployment is 10%. D. frictional unemployment is 2%.
Discuss the changes in regulations of financial firms during the 1990 and whether the proposed benefits occurred.
What will be an ideal response?