Fluctuations around the long-run aggregate supply curve are:
A. experienced as expansions, recessions, and recoveries.
B. called the business cycle.
C. normal for an economy.
D. All of these are true.
Answer: D
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Martin's research (1971) supports the claim that the Interstate Commerce Commission (ICC) was a federal regulatory agency, The ICC was designed to capture market gains for the consumers of railroad services as well as for the railroad
industrialists. Indicate whether the statement is true or false
Children of female householders are ________ times more likely to live in poverty than are other children
a. three b. four c. five d. six
One key assumption behind the policy irrelevance proposition is that
A. prices are "sticky" upward. B. markets are not purely competitive. C. wages are "sticky" downward. D. the rational expectations hypothesis holds.
If a firm has excess capacity, then
A) the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales. B) the firm is not producing its minimum efficient scale of output. C) the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity. D) the firm's quantity supplied exceeds its quantity demanded.