When an economy is in long run equilibrium,
a. it will be impossible to sustain the current rate of output in the future.
b. the interest rate will decline.
c. the foreign exchange value of the dollar will tend to appreciate.
d. the actual and natural rates of unemployment will be equal.
D
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If your nominal income is $80,000 and your real income in base year prices is $71,500, what is the CPI?
A) 106 B) 150 C) 112 D) 100 E) 89
Production efficiency occurs when production ________
A) is at a point beyond the production possibilities frontier B) is on the production possibilities frontier or inside it C) is at any attainable point D) is on the production possibilities frontier
Refer to the above figure. We are currently producing at point c. Which of the following statements is TRUE?
A) Resources are not being efficiently utilized. B) Resources are being efficiently utilized. C) The only way to produce more of Goods X or Y is to have an increase in the amount of resources. D) The Law of Increasing Additional Cost does not hold.
Refer to the above table. What does the marginal physical product equal when the amount of labor goes from 11 to 12 units?
A) 600 B) 90 C) 100 D) 690