In the context of aggregate supply, the long run is defined as the period during which
a. some prices are set by contracts and cannot be adjusted.
b. prices can change, but neither aggregate supply nor aggregate demand can shift.
c. individuals have sufficient time to modify their behavior in response to price changes.
d. quantity changes cannot occur in response to changes in relative prices.
C
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Which of the following policy combinations were used by the government during the financial crisis of 2007-2009 in the U.S.?
A) Income tax rates were increased and payroll taxes were reduced. B) Payroll tax rates were increased and government spending was reduced. C) A combination of both fiscal and monetary policies were used. D) The eligibility period for unemployment insurance was shortened.
Countries with low wages will always be able to export to countries with high wages
Indicate whether the statement is true or false