Multiple Choice
Which of the following are the defining assumptions of the long run in macroeconomics?
A) Factor prices are exogenous,and technology and factor supplies are changing.
B) Factor prices adjust to output gaps,and technology and factor supplies are constant.
C) Factor prices are exogenous,and technology and factor supplies are constant.
D) Factor prices have fully adjusted to output gaps,and technology and factor supplies are changing.
E) Factor prices are exogenous,and technology and factor prices are exogenous.
Correct Answer:

Verified
Correct Answer:
Verified
Q34: An inflationary output gap occurs when<br>A)actual GDP
Q35: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 24-2 Refer
Q36: Which of the following will occur as
Q37: Consider the AD/AS macro model.A permanent demand
Q38: Why are income taxes in Canada considered
Q40: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 24-2 Refer
Q41: The Phillips curve describes the relationship between
Q42: The diagram below shows an AD/AS model
Q43: When we study the adjustment process in
Q44: Consider the basic AD/AS macro model in