In the short-run, a fall in demand results in _____ while in the long-run, a fall in demand results in ______

A. an increase in output and prices; a decline in output only
B. a fall in prices and an increase in output; no change in output or prices
C. a fall in prices only; and fall in output and prices
D. a fall in output and prices; a fall in prices only


Ans: D. a fall in output and prices; a fall in prices only

Economics

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The investment function intersects the saving schedule at an interest rate of 8 percent and a level of investment of $1.2 trillion a year. If the consumption curve intersects the 45-degree reference line at $3 trillion, then

A) the C + I curve will intersect the 45-degree reference line at $1.2 trillion. B) the C + I curve will intersect the 45-degree line at $1.8 trillion. C) the equilibrium level of real GDP is $1.8 trillion. D) the equilibrium level of real GDP is $4.2 trillion.

Economics

Which of the following is not a resource for a society?

a. capital goods, like factories and machine tools b. entrepreneurship c. legal institutions d. labor

Economics

Which of the following statements is false?

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Economics

Domestic law and order, the infrastructure, and the climate of international trade are all aspects of a country's:

A. natural resources endowment. B. human resources investment. C. capital investment. D. political environment.

Economics