Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher
B. expansionary; higher; potential
C. recessionary; higher; potential
D. recessionary; lower; lower
Answer: B
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Which barrier to entry is an exclusive right granted to the author or composer of a literary, musical, dramatic or artistic work?
A) patent B) copyright C) public franchise D) government license E) natural barrier
According to the law of supply:
a. there is an inverse relationship between price and quantity demanded. b. there is a direct relationship between price and quantity demanded c. there is an inverse relationship between price and the quantity supplied. d. there is a direct relationship between price and the quantity supplied.
When externalities cause markets to be inefficient,
a. government action is always needed to solve the problem. b. private solutions can be developed to solve the problem. c. given enough time, externalities can be solved through normal market adjustments. d. there is no way to eliminate the problem of externalities in a market.
Refer to the information provided in Figure 8.6 below to answer the question(s) that follow. 
Figure 8.6 Refer to Figure 8.6. The vertical distance AB is Outdoor Equipment's
A. total cost. B. average fixed cost. C. marginal cost. D. total fixed cost.