Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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Resource owners will supply additional units of a resource as long as
a. doing so increases their costs b. doing so increases production c. the quantity of the resource demanded exceeds the resource price d. resource users demand the resource e. doing so increases their utility
Summarize how the law of demand explains the effects of price on the quantity demanded
What will be an ideal response?
Taxes are the only mechanism by which the federal government earns money.
Answer the following statement true (T) or false (F)
For this question, assume that firms' of productivity are accurate while workers' expectations of productivity adjust slowly over time. In this case, an increase in productivity will cause which of the following?
A) an increase in both the real wage and the natural rate of unemployment B) a decrease in both the real wage and the natural rate of unemployment C) an increase in the real wage and a reduction in the natural rate of unemployment D) a decrease in the real wage and an increase in the natural rate of unemployment E) none of the above