What happens to the LRAS curve when the level of potential output for an economy increases over time?
What will be an ideal response?
Ans: The LRAS curve shifts to the right: these shifts represent economic growth and are due to an increase in the labor force and/or an increase in the productivity of labor.
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Unemployment related to job search is known as ________
A) cyclical unemployment B) frictional unemployment C) structural unemployment D) tertiary unemployment
The slowdown in U.S. economic growth in the period 1974-95 was primarily caused by ________
A) falling labor growth B) falling capital growth C) falling productivity growth D) none of the above
Jim has estimated elasticity of demand for gasoline to be 0.7 in the short-run and 1.8 in the long run. A decrease in taxes on gasoline would:
a. lower tax revenue in both the short and long run. b. raise tax revenue in both the short and long run. c. raise tax revenue in the short run but lower tax revenue in the long run. d. lower tax revenue in the short run but raise tax revenue in the long run.
The total revenue curve for a firm is given by TR = 2Q.
A. The firm may be a monopolist or a perfectly competitive firm. B. The firm is definitely not a monopolist. C. The firm is definitely a monopolist. D. One cannot tell from the equation what market form applies.