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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Which of the following is an accurate statement about economic models?
a. Economists use only three models. b. Models should include as many detailed facts as possible. c. There is one correct model that should be used for all economic tests. d. Models should vary depending on how they will be used.
Intra-industry trade in differentiated products is negligible between countries that are similar in their general production capabilities.
Answer the following statement true (T) or false (F)
The role of platform firms is to
A) reduce the amount of market competition among sellers. B) lower transaction costs for buyers and sellers. C) reduce the level of voluntary exchanges in markets. D) reduce the amount of information in the price system.
A good example of a monopolistic competitive industry is
A) the federal highway system. B) wheat farms in the United States. C) the country music industry. D) the four major textbook publishers together with nearly 90 percent of industry sales.