When perfectly competitive firms are earning zero accounting profits,
a. we would expect entry into the industry
b. we would expect stability in the industry, since it is in long run equilibrium.
c. we would expect exit from the industry.
d. we would expect none of the above.
c
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Refer to the scenario above. Based on this information, it can be concluded that ________
A) Plutoland experienced a current account surplus during that year B) Plutoland experienced a current account deficit during that year C) Earthland ran a current account deficit during that year D) Earthland and Plutoland should stop trading with each other
Suppose the U.S. economy is producing at the natural rate of output. An appreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the long run, everything else held constant
(Assume the appreciation causes no effects in the supply side of the economy.) A) an increase; an increase B) a decrease; a decrease C) no change; an increase D) no change; a decrease
The inflation tax
a. is an alternative to income taxes and government borrowing. b. taxes most those who hold the most money. c. is the revenue created when the government prints money. d. All of the above are correct.
During some year a country had exports of $50 billion, imports of $70 billion, and domestic investment of $100 billion. What was its saving during the year?
a. $80 billion b. $100 billion c. $120 billion d. $150 billion