Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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Indicate whether the statement is true or false
In a production possibilities frontier model, a point inside the frontier is
A) productively and allocatively inefficient. B) productively inefficient. C) productively efficient. D) allocatively efficient.
A supply curve that is parallel to the quantity axis is
A) perfectly elastic. B) perfectly inelastic. C) relatively inelastic. D) unitary elastic.
Are countries that began modern economic growth more recently doomed to be permanently poorer than the countries that began modern economic growth in earlier periods? Explain.
What will be an ideal response?