Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower


Answer: C

Economics

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Refer to the information provided in Figure 9.1 below to answer the question(s) that follow.  Figure 9.1Refer to Figure 9.1. This farmer will earn ________ economic profit if the price is $10.

A. -$2. B. $0. C. $2. D. $7.

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A. in greater quantities. B. using more capital and less labor. C. at a lower opportunity cost. D. using more labor and less capital.

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a. a conglomerate. b. a vertical merger. c. a horizontal merger. d. a limited-liability partnership.

Economics