Equilibrium:
A. Will only occur at full employment.
B. Can occur at any output level.
C. Will occur at or below full employment.
D. Will occur at or above full employment.
B. Can occur at any output level.
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Theoretically, in a long-run cost function:
a. all inputs are fixed b. all inputs are considered variable c. some inputs are always fixed d. capital and labor are always combined in fixed proportions e. b and d
It is often easier to see the ___________ of globalization than it is to see the _____________. This is because the costs tend to be more ________________, while the benefits tend to be __________________
A) costs; benefits; concentrated; widely dispersed. B) benefits; costs; concentrated; widely dispersed. C) costs; benefits; widely dispersed; concentrated. D) benefits; costs; widely dispersed; concentrated.
During the Great Recession the fiscal policy measures taken to exit the recession was
A. raise taxes and run budget deficits. B. raise taxes and run budget surpluses. C. lower taxes and run budget surpluses. D. lower taxes and run budget deficits.
In the short run, if the price level rises, then the overall economy can temporarily produce beyond its nominal capacity. One reason for this is that
A. existing capital equipment can be used more intensively. B. wage rates rise almost simultaneously with the price level. C. the unemployment rate usually rises dramatically along with the price level. D. workers can be switched from counted to uncounted production.