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
Economics
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A) Q1 + Q2 B) Q2 C) Q2 - Q1 D) Q1
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If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economists would say that expectation formation is
A) irrational. B) rational. C) adaptive. D) reasonable.
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Suppose that 2 per cent of the employed lose their jobs each month (s = 0.02) and 38 per cent of the unemployed find a job each month (f = 0.38). Then, the steady-state rate of unemployment is:
A. 2 percent. B. 5 per cent. C. 16 per cent. D. 36 per cent.
Economics
What is the economic role of a patent?
What will be an ideal response?
Economics