A firm's long-run average cost curve shows the ________ average cost at which it is possible to produce each output when the firm has had ________ time to change both its labor force and its plant

In the short run, an increase in government spending that causes an increase in the budget deficit

A) affects the level of output but not its composition. B) affects both the level and composition of output. C) affects only the price level. D) is neutral. E) none of the above

Countries with a relatively high stock of skilled labor will have a comparative advantage in producing goods that require relatively larger quantities of skilled labor

a. True b. False Indicate whether the statement is true or false