Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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Once the copyright on a book expires,
A) only the first publisher to reissue the book can claim copyright of that author's words. B) any publisher can now claim copyright of that author's words. C) no publisher can claim copyright of that author's words, but the book can be reissued by any publisher. D) no publisher can claim copyright of that author's words because the book can never be reissued.
A reverse repurchase agreement of government securities by the Fed
A) permanently increases bank reserves. B) temporarily increases bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves.
A firm that was initially a monopsonist, but now has to buy from a competitive resource market will:
a. buy more amount of resources and pay a higher price for these resources. b. buy the same amount of resources and pay a higher price for these resources. c. buy less amount of resources and pay a lower price for these resources. d. buy less amount of resources and pay a higher price for these resources. e. buy more amount of resources and pay a lower price for these resources.
If the wage rate were $250, how many workers would be hired?
A. 3
B. 4
C. 5
D. 0