Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a lower long-run price, we know that
A) this is a decreasing-cost industry.
B) this is an increasing-cost industry.
C) some firms will be losing money in the long run.
D) after further adjustments, price will rise to its original level.
B
Economics
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When the economy is in the liquidity trap,
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If the Fed reduces its discount rate, the problem being addressed is more likely to be inflation than recession
Indicate whether the statement is true or false
Economics