When the economy is in short-run equilibrium, there will be ________ output gap.
A. only a recessionary
B. no
C. either a recessionary or an expansionary
D. only an expansionary
Answer: C
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Teenage unemployment rates tend to be a little lower than the overall unemployment rate.
Answer the following statement true (T) or false (F)
If supply and demand both simultaneously increase
A) the market clearing price definitely rises, and the equilibrium quantity definitely falls. B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate. C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate. D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely rises.
In general, we would expect the marginal cost of pollution abatement to be
A) zero. B) decreasing. C) increasing. D) constant.
In the long run, a perfectly competitive firm will produce:
a. in the upward-sloping portion of its LRAC curve. b. where P = minimum AVC. c. in the downward-sloping portion of its LRAC curve. d. where P is greater than minimum ATC. e. where P = minimum ATC.