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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The causes of prosperity that link high levels of prosperity to high levels of inputs of production, without explaining why the levels of those inputs are high, are referred to as:
A) fundamental causes of prosperity. B) implicit causes of prosperity. C) proximate causes of prosperity. D) explicit causes of prosperity.
If a health insurer charges a rate equal to the average cost of health care for the entire population, then it is likely that
A) everyone buys health insurance. B) unhealthy people will not buy health insurance. C) healthy people will not buy health insurance. D) nobody will buy health insurance.
As the price of a competitive firm's product rises, the firm's demand for labor also rises
a. True b. False Indicate whether the statement is true or false
Capital is a(n) ____ variable and investment is a(n) ____ variable
a. physical, financial b. stock, flow c. asset, liability d. flow, stock