Returns to scale is a concept that operates
A) only in the short run.
B) only in the long run.
C) in both the long run and the short run.
D) in either the long run or the short run but never both.
B
Economics
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One key assumption lying behind the policy irrelevance proposition is that
A) wages are "sticky" downward. B) prices are "sticky" upward. C) the rational expectations hypothesis is correct. D) markets are not purely competitive.
Economics
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Economics