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
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The figure above portrays a total revenue curve for a perfectly competitive firm. Curve A is straight because the firm
A) is a price taker. B) faces constant returns to scale. C) wants to maximize its profits. D) has perfect information.
If the output of a firm is increased by one unit, the revenue addition is called
A. total revenue. B. average revenue. C. marginal revenue. D. economic profit.
Describe how Say's law can hold in a money economy, according to the classical economists
American critics of the WTO argue that free international trade and investment will:
A. reduce U.S. imports. B. reduce employment in developing nations. C. undermine environmental and labor protections in the United States. D. increase immigration from low-income to high-income nations.