Starting from potential output, if firms become more optimistic about the future and decide to increase their investment in new capital, then this will generate a(n) ________ gap and inflation will ________.
A. expansionary; decrease
B. recessionary; decrease
C. expansionary; increase
D. recessionary; increase
Answer: C
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Refer to Table 19-16. Given the information above, what can we say has happened in the economy from 2015 to 2016?
A) The price level has remained constant. B) The price level has fallen. C) The price level has risen. D) Not enough information is available to determine what has happened to prices.
For most of the 19th century in the American West, there was
A. an abundance of labor relative to land. B. abundance of land relative to labor. C. an abundance of both labor and land. D. a scarcity of both labor and land.
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.Pat's explicit costs are ________, and Pat's implicit costs are ________.
A. $16,000; $51,000 B. $15,000; $36,000 C. $35,000; $16,000 D. $16,000; $35,000
Crowding out refers to the effect that:
A. C and I are completely unrelated to changes in G. B. C and I are indirectly affected by changes in G. C. C is directly affected by changes in G. D. C and I are directly affected by changes in G.