Suppose a perfectly competitive market is in a long-run equilibrium when a permanent decrease in the market demand occurs. In the long run, which of the following definitely occurs?
A) The price decreases.
B) The number of firms decreases.
C) The firms' marginal cost increases.
D) Marginal revenue increases.
B
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Long-term debt has a maturity that is
A) between one and ten years. B) less than a year. C) between five and ten years. D) ten years or longer.
A nation can determine how close it is to the classical range by considering its:
a. Employment rate. b. Net export position. c. Exchange rate d. None of the above.
Which of the following actions would the Fed take to fight inflation?
(A) Increase the money supply. (B) Reduce the money supply. (C) Increase government spending. (D) Raise taxes.
If the national debt is owed to foreigners,
A. the debt constitutes a burden to domestic citizens. B. economic growth will necessarily be higher than if the debt were owed to domestic citizens. C. paying off the debt will involve a transfer of resources within the country. D. future interest payments on the debt are not a burden to the nation.