If the economy is already producing its potential output, then, in the long run, any change in fiscal policy aimed at stimulating demand will simply increase the price level and have no impact on the output level in the economy
Indicate whether the statement is true or false
true
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Juanita earned a B.S. in engineering and went to work for a large defense contractor in a small town in California. When the government cut spending, Juanita and 99 others were laid off. The only other business in the town is growing grapes to be made into raisins, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Juanita is experiencing is:
A. cyclical. B. structural. C. permanent. D. frictional.
Describe the relationship between marginal cost and average total cost
What will be an ideal response?
In the late 1920s, you could buy $5,000 worth of stock by putting down as little as
A. $100. B. $200. C. $500. D. $1,000.
A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data below. At the market wage rate of $30 and product price of $5 this firm will:
A. Hire the same number of laborers in both situations
B. Increase the number of laborers hired from 4 to 6
C. Decrease the number of laborers hired from 4 to 3
D. Increase the number of laborers hired from 4 to 5