If the money supply grows 7% during the year, and people expected the money supply to grow by 5%, what happens to the short-run aggregate supply curve, according to the misperceptions theory?
A. It shifts up.
B. It shifts down.
C. It doesn't shift.
D. It shifts down unless Ricardian equivalence holds, in which case it doesn't shift.
Answer: B
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Economies of scale will create a barrier to entry in an oligopoly industry when
A) a firm's minimum efficient scale occurs where long-run average total costs are constant. B) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a small fraction of total industry sales. C) the industry's four-firm concentration ratio is less than 40 percent. D) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a large fraction of total industry sales.
Those individuals 16 years of age and over who are working in a job or actively seeking employment are called:
A) the labor force. B) the employed. C) the unemployed. D) none of the above.