A characteristic of the long run is
A) all inputs can be varied.
B) there are fixed inputs.
C) there are both fixed and variable inputs
D) plant capacity cannot be increased or decreased.
A
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Use the following graph to answer the next question.
In the diagram, Qf is the full-employment output. A contractionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at
A. AD0. B. AD1. C. AD2. D. AD3.
What is the shape of the long-run aggregate supply curve? Why?
What will be an ideal response?
What is the loanable funds market?
What will be an ideal response?
Which of the following statements accurately describes the two measures of the money supply?
A) The two measures do not move together, so they cannot be used interchangeably by policymakers. B) The two measures' movements closely parallel each other, even on a month-to-month basis. C) Short-run movements in the money supply are extremely reliable. D) M2 is the narrowest measure the Fed reports.