2 potential problems with macro equilibrium
What will be an ideal response?
undesirability and instability
You might also like to view...
Which of the following will happen if some firms in a monopolistically competitive market incur losses in the short run and the market conditions are not expected to change?
A) The existing firms will continue production in the long run. B) The demand for the goods produced by the firms will decrease. C) New firms will enter the industry in the long run. D) Some firms will exit the industry in the long run.
According to Adam Smith, the "invisible hand" refers to which of the following?
a. The "best interests of society (public interest) will occur as an outcome of the market process coordinating the self-interested interactions of buyers and sellers (private interest). b. Government interference is the invisible hand of inefficiency. c. Bribes and graft is the invisible hand of inefficiency. d. The "best interests of society" will occur as an outcome of careful guidance by government authorities in allocating scarce goods and services.
Assuming that Chinese food and Thai food are substitutes, if P. F. Chang's Chinese Restaurant reduces its prices: a. the sales of the nearby Bahn Thai restaurant will increase
b. demand for meals at P. F. Chang's will increase. c. the demand for meals at the Bahn Thai restaurant will decrease. d. the quantity of food demanded from P. F. Chang's will decrease.
The rate of full employment is usually considered to be:
(a) 100%. (b) 98%. (c) 97%. (d) 96%.