Which of the following is true in the short run but not in the long run?
a. Actual output is equal to potential output.
b. Actual output can exceed potential output.
c. Structural unemployment can exist
d. Frictional unemployment can exist.
e. Real and nominal GDP can differ.
b
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The income elasticity of demand is the percentage change in ________ divided by the percentage change in ________
A) the price; income B) the quantity demanded; income C) income; the quantity demanded D) income; the price
Other things equal, if the Fed increases the discount rate,
A) the monetary base will decrease and the money supply will remain constant. B) the monetary base and the money supply will both decrease. C) the money supply will decrease and the monetary base will remain constant. D) the monetary base will decrease and the money supply may increase or remain constant.
The national debt is ________ of federal budget deficits
a. an annual flow b. the net accumulation c. the inverse d. operating budget minus the capital budget portion
Suppose a government is considering imposing either a tariff or a quota on imported grain, and either policy will result in exactly 750 tons of grain being imported. How do these policies differ?
A. Domestic production will be higher with the quota than with the tariff. B. The price of grain under the quota will be higher than the price under the tariff. C. The quota will generate revenue for the firms that hold import licenses, while the tariff will generate revenue for the government. D. The price of grain under the tariff will be higher than the price under the quota.