The long-run output of an economy depends on: (school)
What will be an ideal response?
resources, technology, and institutions.
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Which of the following public policies is an example of a price ceiling?
A) Support prices for agricultural commodities B) Minimum wage laws C) Rent control program D) all of the above
Which of the following goods is an intermediate good?
A) lettuce that a restaurant buys to put on sandwiches B) tires that a car company buys to put on the cars it produces C) a television set that Chi-Mai buys to put in her college dorm room D) a and b E) b and c
Another benefit from entering a currency union that is not optimal would include:
A) the idea that economies interconnected in a currency union with increased trade also develop a symmetry of demand shocks. B) the reduction of interdependence and an increase in self-sufficiency. C) the cessation of disagreement over trade protection. D) the possibility of increasing the currency area.
When we compare PAE and actual output (Y) if PAE is greater than Y we expect that:
A. eventually production will decrease. B. eventually production will increase. C. the government will intervene by cutting down on taxes. D. there will be no change in aggregate production.