Which of the following statements is false?
A) If the economy is self-regulating, wages are flexible.
B) The frictional unemployment rate equals the natural unemployment rate minus the structural unemployment rate.
C) If the economy is producing Natural Real GDP, it is operating at the natural unemployment rate.
D) The economy is operating at full employment if it is producing more than Natural Real GDP.
D
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The intersection of aggregate demand and long-run aggregate supply identify the price level at which total planned
A) government spending equals total planned tax revenues. B) real expenditures equal actual nominal GDP. C) real expenditures equal total planned production. D) export spending equals total planned import spending.
Which of the following does not hold true for a perfectly competitive firm in long-run equilibrium?
A) Marginal cost will be minimized. B) It will minimize average total cost. C) Its economic profit will be zero. D) It will charge a price equal to marginal cost.