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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Refer to Figure 21.1. The highest 20% of the population earn ________ of total income
A) 40% B) 44% C) 60% D) 80%
Margarine and butter can both be used as a spread on toast. This means that they are:
a. independent goods. b. complementary goods. c. substitute goods. d. Giffen goods. e. inferior goods.
The bigger the shortage of a good or service, the ____________ the seller of the good or service will be to an individual customer _________. (We are assuming here that the shortage cannot, for legal reasons, be alleviated through a rise in price.)
A) more polite; without having sales adversely affected B) ruder; without having sales adversely affect C) more polite; even though sales will be adversely affected D) ruder; even though sales will be adversely affected
The GDP of the United States includes production by foreign-owned firms that are located in the United States.
Answer the following statement true (T) or false (F)