In the long-run, the entry of new firms in a competitive market shifts the aggregate supply curve to the left
a. True
b. False
Indicate whether the statement is true or false
False
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If economic fluctuations originate on the supply side,
A. there will be no relationship between unemployment and inflation. B. real wage increases will be necessary to eliminate unemployment. C. inflation and unemployment will be negatively related. D. inflation and unemployment will be positively related.
How do adverse selection and moral hazard affect the market for insurance?
What will be an ideal response?
If the demand for a good increases, it is likely that the demand for the factors of production used as inputs will:
A. increase. B. stay the same. C. decrease. D. None of these statements is true.
Which of the following is an exhaustive governmental outlay?
A. A federal $5,000 subsidy check to an Illinois farmer. B. A Temporary Assistance to Needy Families payment made by the state of New York. C. A NASA payment to Boeing Corporation for space hardware. D. A federal old age insurance payment to a retired coal miner.