Warranties reduce information asymmetry.
Answer the following statement true (T) or false (F)
True
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
What is the analytically correct way to allocate joint costs or to determine the specific costs of products produced jointly (such as the view and the food from a restaurant with an excellent view)?
A) By comparing marginal costs B) By comparing all costs other than sunk costs C) By subtracting the total costs from the total revenue D) By using the prevailing interest rate to discount the stream of expected future costs and benefits E) There is no analytically correct way to do so.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Refer to Scenario 1.2 below to answer the question(s) that follow.SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.Refer to Scenario 1.2. The collection and use of the data on automobile emissions and global warming levels is an example of
A. econometrics. B. empirical economics. C. economic history. D. law and economics.