The long-run average cost curve is the relationship between the highest attainable average total cost and output when both the plant size and labor are varied

By reducing the required reserve ratio, the Fed can not only create excess reserves but also increase the money multiplier

a. True b. False Indicate whether the statement is true or false

Consider the following:

(i) Suppose labor and capital are complements in production. Explain why a firm's long-run demand for labor is more elastic than its short-run demand. (ii) Suppose labor and capital are substitutes in production. Will the firm's long-run demand for labor still be more elastic than its short-run demand? Why or why not?