For an economy starting at potential output, an increase in investment in the short run results in a(n):

A. recessionary output gap.
B. increase in potential output.
C. expansionary output gap.
D. decrease in potential output.


Answer: C

Economics

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What does this indicate about the supply curve for janitorial services? A) Supply is relatively inelastic. B) Supply is perfectly elastic. C) Supply is unit-elastic. D) Supply is perfectly inelastic.

Economics

All of the following are differences between hedge funds and mutual funds EXCEPT

A) hedge funds are largely unregulated. B) hedge funds consist of a relatively number of wealthy investors. C) hedge funds make risky investments that mutual funds cannot make. D) hedge funds use money collected from savers to make investments.

Economics

Public goods face the

A) principle of rival consumption. B) free-rider problem. C) law of overproduction. D) exclusion principle.

Economics

If the society chooses point B instead of point C,

Hypothetical Production Schedule for a Two-Product Economy
A. economic growth is more likely.
B. economic growth is less likely.
C. the chances of achieving economic growth will not be affected.
D. unemployment will result.

Economics