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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The term "tragedy of the commons" describes:
a. how communal ownership of property leads to overuse and speedy exhaustion of resources. b. the very difficult circumstances that the every-day citizens faced when the first arrived in colonial America. c. how collective ownership of property produces a greater incentive for people to shirk, or work less than they otherwise would. d. how establishing governments was very difficult in the initial settlements.
Which of the following will lead to an increase in the quantity of money demanded?
a. A decrease in the overall level of wealth in the economy b. A decrease in the price level c. A decrease in nominal income d. An increase in real income e. A decrease in real income
The optimal number of workers for a perfectly competitive firm to hire occurs when
A. diminishing marginal productivity is first experienced. B. the wage rate equals the marginal product of the last worker. C. the wage rate equals the value of marginal product of the last worker. D. total labor cost equals total revenue.
Refer to the above figure. The points between A and B are known as
A. a peak. B. a trough. C. an expansion. D. a contraction.