Which of the following statements is CORRECT?
A) A firm does not need to take into account its sunk cost when making current decisions.
B) Long-run decisions are easily reversed.
C) Short-run decisions are not easily reversed.
D) In the long run, a firm can change its plant but not the quantity of its labor.
A
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"Discretionary fiscal policy is a fiscal action initiated by an act of the Federal Reserve, while automatic fiscal policy is a fiscal action induced by the state of the economy." Is the previous statement correct or incorrect? Explain your answe
What will be an ideal response?
The view that inappropriate monetary policy was the main reason for the depth of the Great Depression in the United States is most closely associated with:
A. monetarism. B. the mainstream view. C. the rational expectations theory. D. the real-business-cycle theory.