In the long run, we typically assume that ________
A) capital, labor, and technology are independent of the level of inflation
B) the natural rate of unemployment is independent of the level of inflation
C) aggregate supply is fixed and independent of the level of inflation
D) all of the above
E) none of the above
D
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In an iron and steel plant with 4 blast furnaces, 40 laborers produce 160 tons of pig iron every day. The labor productivity in the firm is equal to _____
a. 0.25 ton per worker b. 4 tons per worker c. 10 tons per worker d. 0.1 ton per worker e. 40 tons per worker
Suppose the government imposes a per unit tax on an item whose production process creates a negative externality. Suppose the tax is exactly the value of the marginal externality cost. If the government now uses the tax revenue to clean up pollution from this process, the market will:
a. have internalized all costs and benefits. b. be inefficient. c. be destroyed. d. not have failed. e. be subject to obligatory controls.
Small differences in economic growth rates translate into significant differences in living standards.
Answer the following statement true (T) or false (F)
Which of the following is an example of a price ceiling?
A) the minimum wage B) agricultural price supports C) rent controls D) None of the above is correct.