The real output of the economy under conditions of full employment
A. is determined by the real-balance effect.
B. is long-run aggregate demand.
C. happens only when there is no inflation.
D. is long-run aggregate supply.
Answer: D
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A society that relies on a market-based economy will always protect the natural environment.
Answer the following statement true (T) or false (F)
The NAIRU is a key indicator of how
A. much the economy can slow down without a recession. B. much structural unemployment the economy can sustain. C. unemployment trends occur. D. much faster the economy can grow without pushing up inflation.
The reason a corporation has retained earnings is to
A. avoid the double taxation of corporate profits. B. be able to make unemployment payments. C. pay unemployment taxes. D. make investments that will increase the value of the stock.
Low concentration ratios are typical of monopolistic competition.
Answer the following statement true (T) or false (F)