Consider a monopolistically competitive industry which is in long-run equilibrium. Which of the following is TRUE?
A) All firms charge a price equal to average total cost.
B) All firms charge a price equal to marginal cost.
C) All firms earn positive economic profit.
D) Demand, average total cost, and marginal cost all intersect.
A
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According to classical theory, any changes in aggregate demand will
A) have no affect on prices or real Gross Domestic Product (GDP). B) lead to changes in both real Gross Domestic Product (GDP) and the price level. C) lead to changes in the price level. D) lead to changes in real Gross Domestic Product (GDP), but not in the price level.
According to this Application, Professor Gordon is ________ about future economic growth in the United States and he predicts a ________ increase during this century
A) optimistic; small B) pessimistic; large C) pessimistic; small D) optimistic; large
Under the EMS, Germany set the system's
A) monetary policy while the other European countries pegged their currencies to the DM. B) fiscal policy while the other European countries pegged their currencies to the DM. C) monetary policy while the other European countries kept their currencies fluctuating relative to the DM. D) fiscal policy while the other European countries kept their currencies fluctuating relative to the DM. E) monetary policy, while other European countries maintained their traditional policies.
The labor force in the United States is defined as the adult population who are either employed or unemployed
a. True b. False Indicate whether the statement is true or false