Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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A. a luxury B. a domestic C. an illegal D. an imported
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If unit costs increase as the quantity of production increases and all inputs are variable, then a firm is experiencing
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As a general rule, what impact does technological progress have on a PPC?
What will be an ideal response?