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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Refer to the scenario above. Which of the following is true if David's maximum willingness to pay for the good falls to $380?
A) James will win the auction. B) Rachel will not take part in the auction. C) The owner of the good will earn the same average revenue. D) David will win the auction.
When the Fed makes bonds more or less attractive, it influences the:
A. Open market decision. B. Money multiplier. C. Portfolio decision. D. Reserve decision.
The decreasing portion of a firm's long run average cost curve is attributable to:
A. diminishing returns to scale. B. increasing marginal cost. C. economies of scale. D. diseconomies of scale.
High-deductible insurance plans have all but disappeared.
a. true b. false