The perfect competitor's demand curve is perfectly elastic
A. only in the short run.
B. only in the long run.
C. in both the short and the long run.
D. in neither the short nor the long run.
C. in both the short and the long run.
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Which of the following is a measure of standard of living that is not included in GDP?
a. recreation and travel b. literacy level c. medical expenses d. college tuition
With the invention of banking, one important aspect of money was that
a. banks have some discretion over the money supply. b. banks have complete control over the money supply. c. governments lost all control over the money supply. d. individuals have no discretion over the money supply.
A profit-maximizing firm should continue to hire workers until the MRP has declined to the level of the market wage rate in a competitive labor market.
Answer the following statement true (T) or false (F)
Using the money demand and money supply model, an open market purchase of Treasury securities by the Federal Reserve would cause the equilibrium interest rate to
A) increase. B) decrease. C) not change. D) increase if the economy is in a recession.