The policy irrelevance proposition states that
A. anticipated changes in monetary policy are ineffective in changing real Gross Domestic Product (GDP).
B. only relatively large expected changes in monetary policy impact the economy.
C. in the short run unanticipated changes in monetary policy are ineffective in changing real Gross Domestic Product (GDP).
D. only statements from the White House have impact on the economy.
Answer: A
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Use the following graph to answer the next question.
The short-run supply curve for this perfectly competitive firm is the
A. segment of the MC curve lying at and to the right of quantity k. B. entire MC curve. C. segment of the MC curve lying at and to the right of quantity h. D. segment of the AVC curve lying to the right of the MC curve.
An industry in which the firm's cost structures do not vary with changes in production will have a long-run supply curve that
A. is perfectly elastic. B. slopes downward. C. is perfectly inelastic. D. slopes upward.