If a perfectly competitive industry is neither expanding nor contracting, we would typically expect that:
a. accounting profits to be zero
b. economic profits to be zero.
c. the price of the good will be stable
d. both (b) and (c) would be true.
d
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The long-run aggregate supply curve shows the
A) maximum GDP the nation will ever produce. B) full-employment level of real GDP. C) level of real GDP associated with a constant price level. D) level of output at which real GDP equals nominal GDP.
The real balances effect is caused by an inverse relationship between the price level and the real value of financial assets with fixed nominal value
a. True b. False Indicate whether the statement is true or false
Under a flexible exchange rate system, there is no need for foreign exchange reserves.
Answer the following statement true (T) or false (F)
A cross-country analysis of health statistics suggests that countries with single payer systems have infant mortality rates that are ________ than those rates for the U.S. and survival rates for breast and prostate cancer that are ________ than those rates for the U.S.
A. lower; lower B. higher; higher C. higher; lower D. lower; higher