Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
You might also like to view...
If a firm shuts down it
A) will produce nothing but must pay its fixed and variable costs. B) will suffer a loss equal to its fixed costs. C) will earn enough revenue to cover its variable costs but not all of its fixed costs. D) will produce nothing but must pay its variable costs.
A capital gain occurs when the
A) coupon rate increases. B) current yield increases. C) price of an asset increases. D) yield to maturity increases.
A non-rival good is a good which:
a. is produced by a monopoly. b. is produced by a cartel. c. can provide benefits to additional users at a zero marginal cost. d. is sold in a single market.
Suppose the price of crude oil used to produce gasoline rises significantly. At the same time, consumers purchase hybrid cars in great numbers. In the market for gasoline, the market clearing price ________ and the equilibrium quantity ________.
A) definitely falls, is indeterminate
B) is indeterminate, definitely falls
C) definitely falls, definitely rises
D) definitely rises, is indeterminate