Firms in an oligopoly market can potentially earn economic profits.
a. In the short run, but not the long run
b. In the long run, but not the short run.
c. In both the short run and long run
d. In neither the short run nor the long run
c
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It would be appropriate to use expansionary fiscal policy during prolonged periods of
A. high inflation. B. rapid economic growth. C. high unemployment. D. high budget deficits.
To measure productivity in an economy, we compute the actual real GDP and then divide it by
A) the number of years over which it was produced. B) the amount of labor that went into producing it. C) the capital stock in existence at the time. D) the value of the capital stock that was used up in the process of production. E) the natural real GDP in the same period.
When thinking about the economic actions of groups of people, firms, and society, it is reasonable to analyze them with the tools of economic analysis. Discuss
The short-run aggregate supply curve is most likely to shift down (to the right) when actual output is:
A. not equal to potential output, regardless of whether it is above or below. B. less than potential output. C. equal to potential output. D. greater than potential output.