Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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Which of the following is a distinguishing characteristic of oligopoly?
A) A large number of firms compete. B) Each firm's actions influence the profits of all the other firms. C) Firms are free to enter and exit the industry. D) Natural barriers cannot prevent the entry of new firms.
What are the major goals that unions may pursue in labor negotiations? Are these ever in conflict with one another?
What will be an ideal response?
In which of the following instances is the effect on equilibrium price (whether it rises, falls, or remains unchanged) dependent on the magnitude of the shifts in supply and demand?
What will be an ideal response?
If the price of a good increases and the total revenue remains the same, the demand for the good is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.