In the long run, changes in prices of goods and services paid by consumers have no effect on:
A. aggregate demand.
B. the macroeconomy.
C. aggregate supply.
D. All of these are true.
Answer: D
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An example of a government policy to increase physical capital formation is:
A. the provision of publicly-funded education. B. the construction of an interstate highway system. C. government support for basic research. D. maintaining a well-functioning legal system.
Which of the following summarizes the information provided by a Lorenz curve?
A) the Gini coefficient B) the slope (the rise divided by the run) of the Lorenz curve at a particular point on the curve C) the income distribution ratio D) the Lorenz coefficient
When a competitive firm doubles the quantity of output it sells, its
a. total revenue doubles. b. average revenue doubles. c. marginal revenue doubles. d. profits must increase.
Who from among the following would be classified as out of the labor force?
A. A person who is willing to work but has not looked for a job in two months. B. A person who is willing to work and has looked for a job in the last week. C. A person with a part-time job who wants and is looking for a full-time job. D. None of these people would be classified as out of the labor force.