Long-run full-employment equilibrium assumes:
a. a downward-sloping production function
b. a downward-sloping long-run supply curve (LRAS).
c. the CPI index price level equals the equilibrium wage rate.
d. the CPI equals aggregate demand (AD) equals short-run aggregate supply (SRAS) equalslong-run aggregate supply (LRAS).
d
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Compare and contrast the effects of a quota and a tariff on imports. Be sure to include both short-run and long-run effects in your answer.
What will be an ideal response?
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a. True b. False Indicate whether the statement is true or false
The demand curve for a monopolistic competitor has a negative slope
a. True b. False Indicate whether the statement is true or false