Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher
B. expansionary; higher; potential
C. recessionary; higher; potential
D. recessionary; lower; lower
Answer: B
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What were the results of the Moving to opportunity program in terms of the following:
a. employment opportunities b. better educational opportunities c. overall health d. child behavior
According to the theory of purchasing power parity, whenever a country's price level is expected to fall relative to another country's price level,
A) its currency's real exchange rate relative to the other country's currency should rise. B) its currency should depreciate relative to the other country's currency. C) its currency should appreciate relative to the other country's currency. D) its nominal interest rate should rise relative to the other country's nominal interest rate.
One would expect a shift down in the Phillips curve if there was a(n)
a. a decrease in aggregate demand. b. decrease in government spending. c. decrease in the money supply. d. a shift in aggregate supply to the left. e. Any of the above
If the shoplifter knows that the security guard has a reputation of always being vigilant, what is his best response?
a. Steal b. Not steal c. Run d. Hide