In the long run, the movement of firms into and out of a perfectly competitive market will influence price by
a. shifting the market demand curve
b. shifting the market supply curve
c. making the market supply curve less elastic
d. making the market demand curve less elastic
e. shifting the supply curve for each firm in the market
B
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"The dramatic reduction of the money supply during the 1930s was responsible for the Great Depression. The macroeconomy is intrinsically stable if left alone by the prying hand of government. The Federal Reserve Board, instead of tightening money during booms and loosening money during recessions (policies that are ineffective due to time lags), should simply increase the supply of money at a
steady rate of 3 to 5 percent per year.". This statement reflects which school of thought? a. The traditional Keynesians b. The monetarists c. The traditional classicals d. The new Keynesians e. The new classicals
The amount that producers receive for a good minus their costs of producing it equals
a. quantity supplied. b. supply price. c. deadweight loss. d. producer surplus.