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
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A right-to-work law is
A) a federal law making the closed shop illegal. B) a federal law making the union shop illegal. C) a state law making the union shop illegal. D) a state law making the open shop illegal.
Which of the following best describes rational behavior?
a. analyzing the total expected costs of a decision b. analyzing the total expected benefits of a decision c. Continuing to undertake an activity until its total expected benefit no longer exceeds its total expected cost d. undertaking activities as long as the marginal expected benefit exceeds the marginal expected cost
Why is there a lag between the Fed's actions and the economy's response?
For two goods, X and Y, to be classified as substitutes, it must be the case that:
A. consumers tend to purchase both items together. B. when the price of X rises, the demand for Y increases. C. X and Y are identical. D. when the price of X rises, the demand for Y decreases.