In the classical model, the factors determining output and employment are the factors that ascertain the position(s) of
a. the labor supply curve only.
b. the labor demand curve only.
c. the aggregate production function.
d. both the labor supply curve and the labor demand curve.
e. Both c and d
E
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Over the past two decades, the United States has
A. generally had, or been very near to a trade balance. B. had trade deficits in about as many years as it has trade surpluses. C. persistently had a trade deficit. D. persistently had a trade surplus.
Answer the following statements true (T) or false (F)
1. The short-run supply curve of a purely competitive industry tends to be steeper than the long-run supply curve. 2. The long-run supply curve for a competitive, decreasing-cost industry is downward-sloping. 3. The reason why the long-run supply curve for a purely competitive industry may be upward-sloping is because of diminishing marginal returns. 4. An upward-sloping long-run supply curve indicates a constant-cost industry. 5. Productive efficiency refers to a condition where marginal cost is equal to marginal revenue in the long run.