The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
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When a firm produces 1000 widgets with total cost of $2000 and fixed cost of $1000, what is the average variable cost?
A) $2 B) $1 C) $0.50 D) $0.20
In an economy where nominal incomes adjust equally to changes in the price level, we would expect the long-run aggregate supply curve to be: a. vertical
b. horizontal. c. unit elastic. d. negatively sloped. e. positively sloped.
The influence of technological change on market structure
a. invariably leads to domination by a few firms b. depends on whether it increases or decreases minimum efficient scale c. tends to increase concentration d. depends on whether it increases or decreases the product's value e. depends on foreign competition
Which of the following statements about full employment is correct?I.Full employment means that the unemployment rate is less than 1/2 of 1 percent.II.Full employment means that the transaction costs associated with getting a job are zero.
A. I only B. II only C. Both I and II D. Neither I nor II