State two characteristics of the long-run equilibrium under perfect competition
In a long-run equilibrium (1) there are no firms outside the market that can earn an economic profit by entering it, and (2) no firms that are taking losses remain in the market.
Economics
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According to classical theory, any changes in aggregate demand will
A) have no affect on prices or real Gross Domestic Product (GDP). B) lead to changes in both real Gross Domestic Product (GDP) and the price level. C) lead to changes in the price level. D) lead to changes in real Gross Domestic Product (GDP), but not in the price level.
Economics
When Annie puts her money in her sock drawer for purchases later on, money is acting as a
A) unit of accounting. B) standard of deferred payment. C) store of value. D) medium of exchange.
Economics