Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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According to the table shown, what happened to the cost of living from 2013 to 2014? The cost of living:
A. increased; consumers became worse off than they would have been if the price level had not changed.
B. decreased; consumers became worse off than they would have been if the price level had not changed.
C. increased; consumers became better off than they would have been if the price level had not changed.
D. decreased; consumers became better off than they would have been if the price level had not changed.
Free trade can promote greater output because of the principle of comparative advantage
a. True b. False Indicate whether the statement is true or false
The Coase theorem implies that an efficient solution is possible only if property rights are well-defined and transactions costs are low
a. True b. False Indicate whether the statement is true or false
Suppose the production function is given by Q = 3K + 4L. What is the marginal product of capital when 10 units of capital and 10 units of labor are employed?
A. 11 B. 3 C. 45 D. 4