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
You might also like to view...
Consumers usually pay less than the total cost of medical treatment because
A) a third party, usually an employer, often pays most of the bill. B) competition forces doctors and hospitals to charge prices that do not cover their costs. C) the federal government pays for most medical procedures. D) a third party, usually an insurance company, often pays most of the bill.
Which of the following is a source of inequality in incomes?
a. job preferences b. willingness to take risks c. differences in investment in human capital. d. All of the above are correct.
The additional amount a person is willing to pay to obtain a good or resource now rather than later is called the
a. interest rate. b. nominal price of future goods. c. inflationary premium. d. risk premium.
Which of these is true of political coalitions?
A. Members of a political coalition are usually risk-averse. B. Political coalitions are synonymous to political regulations. C. Political coalitions are similar to the coalitions formed between oligopolistic firms. D. Members of a political coalition are usually risk lovers.