When perfectly competitive firms in an industry are earning positive economic profits,
a. we would expect entry into the industry
b. we would expect stability in the industry, since it is in long run equilibrium.
c. we would expect exit from the industry.
d. we do not know whether there would tend to be entry, exit, or stability in the industry.
a
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Which figure above shows the effect if research is published claiming that eating pizza is healthy?
A) Figure A B) Figure B C) Figure C D) Figure D E) Both Figure A and Figure D
Suppose that consumer and business confidence fall. What is the ultimate outcome for the economy if monetary policymakers respond to keep inflation on an unchanged target?
A. If monetary policymakers respond, output would rise above potential output. B. If monetary policymakers respond, output would remain close to potential output. C. If monetary policymakers respond, output would remain close to potential output but inflation would still rise despite their actions. D. If monetary policymakers respond, output would fall below potential output.