According to the rational expectations theory, which of the following will affect the levels of output and employment?
a. expansionary monetary policy that is fully anticipated
b. contractionary monetary policy that is fully anticipated
c. changes in monetary policy that are unanticipated
d. changes in fiscal policy that are anticipated
C
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Suppose in the automobile industry with free entry and exit, the marginal cost is constant at $5,000, two identical manufacturers are currently producing 1,000 cars each and earning zero economic profit
If the equilibrium price is $20,000, then what is the fixed cost for each manufacturer? A) $20,000,000 B) $15,000,000 C) $5,000,000 D) $10,000,000
Any permanent change in the quantity of any factor of production available capital, technology, land, or labor can cause a shift in both the long-run and short-run aggregate supply curves
a. True b. False Indicate whether the statement is true or false
The short-run aggregate supply curve is:
A. an upward-sloping curve that intersects the aggregate demand curve and the long-run aggregate supply curve. B. a vertical line that intersects the aggregate demand curve but not the long-run aggregate supply curve. C. a horizontal line that intersects the aggregate demand curve and the long-run aggregate supply curve. D. an upward-sloping curve located to the left of the long-run aggregate supply curve
Which group tends to have the highest unemployment rate in the United States?
A. Whites B. women C. Hispanics D. men E. Blacks