Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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Which of the following is NOT a determinant of the demand for gasoline?
A. Consumers' incomes. B. The price of automobiles. C. The supply of gasoline. D. The price of diesel.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
Index funds are usually outperformed by mutual funds that are actively managed by professional money managers
a. True b. False Indicate whether the statement is true or false
“If two countries are growing at the same rate, the income gap between the two countries should remain the same.” Evaluate this statement.
What will be an ideal response?