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
Answer: A
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Externalities can be internalized through voluntary agreements as long as
A. transaction costs are low relative to expected benefits. B. transaction costs are high relative to expected benefits. C. the agreement is a short-run agreement. D. the agreement is a long-run agreement.
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200, where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner. What is the coal mine's marginal expenditure when it hires 100 coal miners?
A. $15,000 B. $20,000 C. $10,000 D. $1,000,000
For a monopolist, at the profit-maximizing level of output price is:
A. equal to marginal revenue. B. equal to marginal cost. C. chosen according to demand. D. constant.
A parameter estimate is said to be statistically significant if there is sufficient evidence that the
A. true value of the parameter does not equal zero. B. sample regression equals the population regression. C. value of the t-ratio equals the critical value. D. parameter estimated from the sample equals the true value of the parameter.