Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher
B. higher; potential
C. lower; higher
D. lower; potential
Answer: B
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Zero economic profits would most likely exist in which market environment?
A) Pure monopoly B) Oligopoly C) Perfect competition D) Any market structure riddled with uncertainty E) None of the above.
A fall in the average income of a consumer, say during a recession, is represented by:
a. an upward movement along the demand curve for a good consumed by the consumer. b. a downward movement along the demand curve for a good consumed by the consumer. c. a shift of the demand curve for a good consumed by the consumer. d. a rotation of the demand curve for a good consumed by the consumer. e. an inward shift of the demand curve for an inferior good consumed by the consumer.
Which of the following would be included in the government expenditures component of GDP?
A. The export of 100 fighter jets to Japan B. Construction costs of a new public school building C. Food stamps used by the Smith family D. A $1,000 check issued by the federal government as part of the Pell Grant program to help college students pay for school
In a second-best world, private actions will lead to the best possible outcomes for the society.
Answer the following statement true (T) or false (F)