The long-run aggregate supply curve assumes that
A. there is no government purchasing of goods and services.
B. all factors of production are fully employed.
C. the unemployment rate is more than 9 percent.
D. only laborers are fully employed.
Answer: B
You might also like to view...
In the Keynesian model, if aggregate expenditures exceed aggregate output and inventories of firms fall, then the aggregate output and the business sector could be expected to:
a. increase output. b. decrease output. c. decrease investment. d. hire fewer workers.
To avoid driving a natural monopolist into bankruptcy, regulatory commissions:
a. allow the monopolist to enjoy an economic profit. b. do not allow the monopolist to make an accounting profit. c. subsidize the monopolist to help it break even. d. allow the monopolist to earn a fair rate of return. e. allow the monopolist to temporarily shut down.
Which of the following countries receives the largest share of U.S. exports?
a. Mexico b. Germany c. Japan d. Canada e. United Kingdom
A transmission lag:
What will be an ideal response?