The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is not complete if
A. other firms want to enter the industry.
B. all firms are at the minimum average cost.
C. all firms receive zero economic profit.
D. no firms want to exit the industry.
Answer: A
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What will be an ideal response?
If the U.S. dollar price of one Japanese yen was $0.009 in 1997 and $0.011 in 2001, then the reciprocal exchange rate adjusted from $1 = ¥111.1 in 1997 to $1 = ¥90.9 in 2001 . This implies that over this time period, the U.S. dollar experienced a depreciation relative to the Japanese yen
a. True b. False Indicate whether the statement is true or false
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A. less is the effect of crowding out on the economy. B. greater is the severity of business fluctuations on the economy. C. less is the built-in stability for the economy. D. greater is the built-in stability for the economy.
The basic money supply or M1 includes
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