Which of the following groups believes that the economy can achieve full employment without inflation through tax reductions, lower resource prices, and deregulation?

Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and automatic stabilizers move the economy back to long-run equilibrium

Using the static AD-AS model in the figure above, this would be depicted as a movement from A) D to C. B) C to B. C) A to E. D) B to A. E) E to A.

If a firm has market power in the output market but buys labor in a competitive market, it will hire the same quantity of labor that a competitive firm will

Indicate whether the statement is true or false