For an economy starting at potential output, a decrease in autonomous expenditure in the short run results in a(n):
A. expansionary output gap.
B. increase in potential output.
C. recessionary output gap.
D. decrease in potential output.
Answer: C
You might also like to view...
The self-interest model of government:
a. suggests that government officials are selfish. b. explains why there are limits on government taxation and spending. c. shows who some government projects take place even if the cost exceeds the benefits. d. All of the above.
In which case did the U.S. Supreme Court's review powers extend to actions by the other two branches of the federal government and not merely to the laws of the states?
(a) Marbury v. Madison (1803) (b) McCulloch v. Maryland (1819) (c) Gibbons v. Ogden (1824) (d) Dartmouth College v. Woodward (1819)
Suppose the United States can produce 2,000 cars or 2,000 trucks. Japan can produce either 2,000 cars or 1,000 trucks. In terms of car production, we can conclude that
A. Japan has a comparative advantage. B. The United States has a comparative advantage. C. Japan has an absolute advantage. D. The United States has an absolute advantage.
Selling a product at different prices when the price difference is unrelated to costs is a practice known as
A. price gauging. B. price monopolization. C. price discrimination. D. price fixing.