Which of the following is FALSE concerning the long run?
A) Economists believe that fiscal and monetary policies have no permanent effects on the economy.
B) Economists more or less agree that the economy tends to fluctuate around the level that is consistent with full employment.
C) In the long run, the unemployment rate returns to its normal level.
D) The current account must tend toward balance in the long run.
E) None of the above.
E
You might also like to view...
When we hear on the news, "The Fed has increased interest rates today," the Fed has most likely
A) raised the required reserve ratio. B) sold government bonds. C) lowered the discount rate. D) bought government bonds.
If an ice-cream manufacturer acquires a frozen yogurt producer, you would likely see
a. Lower prices for both the ice cream and the frozen yogurt b. Higher prices for both the ice cream and the frozen yogurt c. Higher prices for ice cream, but lower prices for frozen yogurt d. Higher prices for frozen yogurt but lower prices for ice cream