The long run refers to a time period long enough for producers to
a. make partial adjustments in the resources used in production to price changes
b. add more labor but not more capital to production
c. add more capital but not more labor to production
d. make complete adjustments in the resources used in production to price changes
e. produce less in response to an increase in price
The long run refers to a time period long enough for producers to
d. make complete adjustments in the resources used in production to price changes
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The figure illustrates aggregate demand and aggregate supply in Sparta. Which of the following events will decrease Sparta's real GDP in the short run?
A) a decrease in taxes B) a fall in resource prices C) a decrease in government expenditure D) an increase in investment
When Dr. Goldfinger decides on the companies in which he will invest, a ________ issue is being addressed
A) positive economic B) normative economic C) microeconomic D) macroeconomic
Everything else held constant, in the market for reserves, when the federal funds rate is 3%, increasing the interest rate paid on excess reserves from 1% to 2%
A) lowers the federal funds rate. B) raises the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
Explain why producers rather than consumers may be the beneficiaries of regulation. Does the evidence support this view?