The economy's self-correcting mechanism
a. prevents the economy from ever being in disequilibrium
b. guides the economy to full employment in the long run
c. maintains a steady long-run price level
d. is a short-run adjustment process
e. is controlled by the Fed
B
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A example of a topic studied in the field of new growth is how incentives for ________ interact with the accumulation of physical capital
A) international trade B) new product development C) research and development D) all of the above
In U.S. recessions, growth in total consumption is ________, which is ________ with the workings of the permanent-income and life-cycle hypotheses
A) largely uninterrupted, perfectly consistent B) largely uninterrupted, rather inconsistent C) noticeably reduced, perfectly consistent D) noticeably reduced, rather inconsistent
Differences in scientific judgment between economists are similar to all of the following except
a. astronomers debating whether the sun or earth was at the center of the solar system. b. meteorologists debating the existence of global warming. c. two politicians arguing about the fairness of the tax code. d. explorers debating whether or not the earth was flat before the time of Christopher Columbus.
A monopolistically competitive firm that is incurring a loss will ________ as long as its revenue covers variable costs.
A. produce in the long run B. produce in the short run C. earn a profit in the long run D. shut down in the short run