In the Long Run,but Not in the Short Run

question 92

Multiple Choice

In the long run,but not in the short run,

• A)cyclical unemployment can exist
• B)structural unemployment can exist
• C)frictional unemployment can exist
• D)the actual rate of unemployment equals the natural rate of unemployment
• E)actual output can exceed potential output

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Definitions:

Tacit Collusion

A situation where firms in the market indirectly coordinate actions by understanding common interests without explicit agreement, often leading to higher prices or less competition.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service; this cost can vary with the level of production.

OPEC

The Organization of the Petroleum Exporting Countries, a group consisting of 13 of the world's major oil-exporting nations.

Perfectly Competitive Market

A market in which all participants are price-takers.