Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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Refer to the figure below. Moving from demand curve D1 to demand curve D2 illustrates a(n):
A. decrease in quantity demanded. B. increase in quantity demanded. C. increase in demand. D. decrease in demand.
Refer to the Article Summary. Prior to the initiation of the BRRD, the European Union had essentially been bailing out troubled banks. In doing this, the EU was, in effect, acting as a
A) private equity firm. B) shadow bank. C) lender of last resort. D) conductor of open market operations.
In a prisoner's dilemma, the Nash Equilibrium might not have a dominant strategy for either player
a. True b. False Indicate whether the statement is true or false
Quantity demanded is determined by how much consumers are willing to pay for the good or service.
Answer the following statement true (T) or false (F)