The fixed expense on a fixed level of capital in the short run becomes a fixed cost for the firm in the long run.
Answer the following statement true (T) or false (F)
False
Rationale: It becomes a variable cost in the long run.
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Stabilization policy refers to attempts to
A) shift the AD curve to smooth short-run fluctuations in output. B) shift the SRAS curve to smooth short-run fluctuations in output. C) shift the AD curve to keep the price level as low as possible. D) shift the SRAS curve to keep the nominal interest rate as low as possible.
The definition of a job leaver is an individual
A) who terminates his job voluntarily in order to work for a family business.
B) whose employment was terminated involuntarily.
C) who competed for a promotion at his company and did not get it.
D) who is underemployed.
The demand for good X will be more elastic than the demand for good Y when
A. good X accounts for a larger percentage of a typical consumer's budget than good Y. B. consumers have more time to adjust to a change in the price of good X than they have time to adjust to a change in the price of good Y. C. good X has fewer substitutes than good Y. D. both b and c E. all of the above
When the government develops policies to stabilize the economy:
A. these policies are unaffected by the multiplier effect. B. only expansionary fiscal policy is impacted by the multiplier effect. C. it needs to consider the multiplier effect for all fiscal policies. D. only contractionary fiscal policy is impacted by the multiplier effect.