In long-run equilibrium, a perfectly competitive firms produces at the output level at which:
a. total revenue is maximized
b. long-run marginal cost is minimized.
c. average total cost is minimized.
d. short-run variable cost is minimized.
c
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Describe the three types of unemployment
What will be an ideal response?
Rapid growth of the money supply might seem appropriate to ________ economists, because ________
A) Keynesian; it can hasten the economy's return to a long-run equilibrium B) Keynesian; the resulting inflation will have no effect on real output C) classical; stabilizing fluctuations contributes to long-run growth D) classical; it will make prices more flexible E) none of the above
Explain why the short-run supply curve is not vertical, but the long-run aggregate supply curve is vertical
The economic policy response to the 2001 recession consisted of
A) a rapid change in fiscal policy and monetary policy. B) a sluggish change in fiscal policy and monetary policy. C) a rapid change in fiscal policy and a sluggish change in monetary policy. D) a sluggish change in fiscal policy and a rapid change in monetary policy.