In competitive price-searcher markets, short-run economic losses will lead to
a. long-run economic losses.
b. the exit of firms from the market and the eventual restoration of zero long-run economic profits.
c. the entry of new firms into the market as old firms fail.
d. the entry of additional firms into the market, causing each firm to experience an increase in demand for its product.
B
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When a permanent negative supply shock hits the economy ________
A) in the long-run, output is permanently lowered whether the central bank reacts or not B) inflation decreases in the short-run C) there is no long-run effect on inflation whether the central bank reacts or not D) all of the above E) none of the above
No government that receives foreign aid sells products to its people
a. True b. False Indicate whether the statement is true or false