Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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A "tight" money, easy "fiscal" policy combination will be preferred by society which values
A) low growth rates, but more goods and services in the future. B) public goods today greater than private goods in the future. C) private goods today more than public goods in the future. D) public and private goods in the future more than public and private goods today.
Suppose a professor gives up her teaching job to devote her time to writing textbooks. If salaries of professors rise,
a. her accounting profit will rise b. her accounting profit will fall c. her explicit costs will rise d. her economic profit from textbooks will fall e. her economic profit from textbooks will rise
If one is interested in knowing whether or not a pair of products are substitutes, one would be interested in the value of the: a. elasticity of supply
b. price elasticity of demand. c. income elasticity of demand. d. cross-price elasticity of demand.
The president of the United States receives tax policy advice from economists in the
a. Federal Reserve. b. Department of Justice. c. Department of the Treasury. d. Congressional Budget Office.