If the economy is not fully using its inputs, pumping money into the economy will put ________ pressure on interest rates and will tend to ________ output
A) upward; increase
B) upward; decrease
C) downward; increase
D) downward; decrease
C
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
If U.S. exports are $2.2 billion and our imports are $2.7 billion
A) the United States is lending to the rest of the world. B) U.S. national saving is too high. C) the United States is borrowing from the rest of the world. D) U.S. investment must decrease.
If the demand is unit elastic, a price cut will leave the quantity demanded unchanged
Indicate whether the statement is true or false
An economic growth model
A) explains changes in nominal GDP per capita in the short run. B) explains changes in real GDP per capita in the short run. C) explains changes in real GDP per capita in the long run. D) explains changes in nominal GDP per capita in the long run.