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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When state universities charge higher tuition fees to out-of-state students than to local students, the universities are practicing
A) first-degree discrimination. B) second-degree discrimination. C) third-degree discrimination. D) fourth-degree discrimination.
Which of the following is the closest example of structural unemployment?
a. An accountant quitting her job to become an investment banker b. An auto worker being fired for poor job performance c. Workers in a firm manufacturing films for roll film cameras losing jobs due to the popularity of digital cameras d. A consultant being laid off because poor economic conditions have depressed the market for consultants e. A college graduate seeking his/her first job in the IT industry
If there is an increase in market demand in a perfectly competitive market, then in the short run prices will
a. rise. b. remain unchanged at the minimum of average total cost. c. fall. d. remain unchanged at the minimum of marginal cost.
During the fall 2010, the US national saving rate has steadily climbed to near 10%, thus the MPC for the nation should be____. According to the simple keynesian model the value of the expenditure multiplier should be _______, assuming we ignore the impacts from automatic stabilizers
Fill in the blank(s) with the appropriate word(s)