Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.

A. lower; potential
B. lower; higher
C. higher; potential
D. higher; higher


Answer: C

Economics

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Refer to the figure. Consumer surplus before the $4 tax is ________, and consumer surplus after the $4 tax is ________.

Fill in the blank(s) with the appropriate word(s).

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If tariffs contribute to inefficiency in the international allocation of resources and lower output and income, why have nations enacted tariffs?

What will be an ideal response?

Economics