If the long-run aggregate supply curve is vertical,
A) the trade-off between unemployment and inflation cannot be permanent.
B) the short-run Phillips curve must be vertical.
C) the economy stays at the natural rate of inflation in the long run.
D) unemployment and inflation are positively related in the long run.
A
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If government expenditures are increased by $50 billion, assuming all other factors stay constant, we would expect real GDP in the long run to
A. increase by more than $50 billion. B. stay constant. C. increase by $50 billion. D. increase by less than $50 billion.
Government actions that create monopolies
A) spur product innovation by the monopoly. B) create deadweight loss. C) result in lower average costs of production. D) ensure that firms price at marginal cost.
A business owned by two or more joint owners, or partners, who share the responsibilities and the profits of the firm and are individually liable for all the debts is a(n)
A) corporation. B) entrepreneur. C) proprietorship. D) partnership.
A decrease in the expected price of corn would likely do the following to the current supply and demand for corn:
A) increase both the demand and the supply. B) decrease both the demand and the supply. C) increase the demand, but decrease the supply. D) increase the supply, but decrease the demand.