According to the AS-AD model, when real GDP exceeds potential GDP, the unemployment rate is definitely
A) less than the natural unemployment rate.
B) greater than the natural unemployment rate.
C) rising.
D) falling.
E) equal to the natural unemployment rate.
A
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What can be done to deal with the principal-agent problem?
A) forbid managers from owning any company stock B) have the CEO be a rotating position C) link top manager salaries to the profits of the firm or the price of the firm's stock D) threaten to liquidate the firm
In what way does long-run equilibrium under monopolistic competition differ from long-run equilibrium under perfect competition?
A) Firms in perfect competition achieve allocative efficiency while firms in monopolistic competition achieve brand efficiency. B) Firms in perfect competition achieve productive and allocative efficiency while firms in monopolistic competition achieve neither allocative nor productive efficiency. C) The only difference is that in a monopolistically competitive market there are many brands to choose from while in a perfectly competitive market there is one standard product. D) Firms in perfect competition achieve productive efficiency while firms in monopolistic competition achieve allocative efficiency.