Which of the following statements is true about the economy in the long run?
a. Equilibrium output is below potential GDP and the rate of unemployment exceeds the natural rate.
b. Production costs are close to zero in the long run.
c. The rate of unemployment is zero in the long run.
d. The aggregate demand curve plays no role in determining the equilibrium level of real GDP.
e. The aggregate supply curve is a horizontal line.
d
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The demand for loanable funds curve illustrates
A) the quantity of loanable funds demanded at any given level of disposable income. B) how the quantity of loanable funds demanded changes when the people's expectations about their future income changes. C) how the quantity of loanable funds demanded changes when wealth changes. D) the quantity of loanable funds demanded at any given level of the real interest rate. E) the quantity of loanable funds supplied to the loanable funds market at any given level of disposable income.
In the figure above, the wage rate is $600 and total fixed cost is $15,000. How much output does the firm produce when average variable cost is at its minimum?
A. 375 B. 1,600 C. 270 D. 4,800 E. 30
The basic issue in the DuPont cellophane case was:
A. whether trade crossed state lines. B. defining the relevant market. C. structure versus behavior. D. the rule of reason.
In nondemocratic countries that have experienced consistent economic growth and improvements in their standards of living
A. there is a tendency to become democratic over time. B. the rise of special-interest groups usually promotes competition and growth. C. there is no tendency to become more democratic over time because the current political situation is economically successful. D. political freedom is apt to decrease over time as governments become more controlling.