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
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A New Keynesian firm produces the output at which
A) marginal revenue equals zero. B) marginal cost equals zero. C) its selling price equals marginal cost. D) marginal revenue equals marginal cost.
The real wage rate measures
a. nominal wages after taxes b. what workers are paid in terms of this year's dollars c. what workers are paid in terms of purchasing power d. what workers have available for spending after paying their bills e. the number of dollars earned by workers
Major league baseball players get paid more than minor league baseball players because of
a. compensating differentials. b. higher levels of educational attainment. c. greater abilities. d. All of the above are correct.
The merger of two pizza restaurant chains would be an example of
A. a horizontal merger. B. a conglomerate merger. C. a vertical merger. D. an independent merger.