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

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


Answer: A

Economics

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In the pivotal Supreme Court decision Munn v Illinois (1877), the court held that only natural monopolies were subject to federal government regulation

Indicate whether the statement is true or false

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With a monopolist's outcome, consumer surplus is:

A. higher than that of a competitive market. B. lower than that of a competitive market. C. the same as that of a competitive market. D. Any of these is possible.

Economics

The income approach to calculating GDP:

A. is more accurate than using the expenditure approach. B. is less accurate than using the expenditure approach. C. will generate the same answer as using the expenditure approach. D. is simpler to calculate than the expenditure approach.

Economics

Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets and liabilities are each 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1 = $US1. What is the dollar value of Argentina's total external wealth?

A) -$60 billion B) -$150 billion C) -$90 billion D) -$210 billion

Economics