Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
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The problem of inconsistent standards across nations can be managed by:
A. policymakers making explicit laws about imports for specific countries. B. consumers making voluntary purchasing decisions. C. policymakers making blanket standards imposed on all imports. D. All of these are true.
For markets operating at quantities lower than the equilibrium quantity produced in an equivalent perfectly competitive market:
A. consumer surplus is always increased. B. total surplus for society is reduced. C. the outcome is efficient. D. total surplus is increased.
Economic profits are
A) total revenue minus explicit costs. B) total revenue minus implicit costs. C) total revenue minus explicit and implicit costs. D) total revenue minus accounting costs.
If the unemployment rate is 7% and the number of people employed is 300,000, total number of people unemployed is approximately
A. 21,000 people. B. 22,580 people. C. 23,330 people. D. 42,050 people.