When spending falls short of output, additional inventories are created
a. True
b. False
Indicate whether the statement is true or false
True
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If stricter immigration laws are imposed and many foreign workers in the United States are forced to go back to their home countries
A) we will move up along the long-run aggregate supply curve. B) we will move down along the long-run aggregate supply curve. C) the long-run aggregate supply curve will shift to the right. D) the long-run aggregate supply curve will shift to the left.
The market for a perfectly competitive industry clears at a price of $3, and the minimum average cost for all firms is $2.50. In the long run, we would expect an increase in
A. each firm’s output. B. the number of firms. C. each firm’s profit. D. each firm’s average cost.
Expansionary fiscal policy may have an even smaller effect on aggregate demand in the open economy than a closed economy
a. True b. False Indicate whether the statement is true or false
An excess demand for money will result in all the following, except:
a. an excess supply of bonds. b. a rise in investment spending. c. a fall in bond prices. d. a fall in consumption spending. e. a fall in equilibrium real GDP.