Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
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A normative statement concerns
A) what is provable. B) what is correct. C) what is incorrect. D) a value judgment.
When did NAFTA go into effect?
What will be an ideal response?
Most of the bank failures in the 1980s and 1990s occurred
a. in states that were rural and in states where the oil industry was important b. in states where there was a large level of new investment in commercial property c. in states with large urban populations such as New York, Michigan, and Pennsylvania d. because of mismanagement, having little to do with the state of the economy e. in states where the population was growing very slowly or actually declining
Real GDP is
A. nominal GDP adjusted for indirect business taxes. B. nominal GDP adjusted for price changes. C. nominal GDP adjusted for transfer payments. D. nominal GDP adjusted for depreciation.