Economists who favor policy activism argue that the United States economy is NOT always in equilibrium because
A) wage and price rigidities exist.
B) the markets are over regulated.
C) the Federal Reserve's monetary policy is too restrictive.
D) the national debt is too large.
A
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The market system is able to allocate resources efficiently because individuals have the right to the output they produce and _____
a. freedom of the press b. freedom of speech c. freedom of movement d. freedom of exchange
Beginning from a long run equilibrium in an increasing cost industry, if there is a substantial, permanent fall in demand for industry output:
a. firms will leave the industry, the quantity produced will fall, and prices will end up lower than their initial long run equilibrium level. b. firms will leave the industry, the quantity produced will fall, and prices will end up higher than their initial long run equilibrium level. c. firms will leave the industry, the quantity produced will fall, and prices will end up at the same level as their initial long run equilibrium level. d. firms will enter the industry, the quantity produced will rise, and prices will end up lower than their initial long run equilibrium level.