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 one of the following will shift the consumption function downward?
a. An increase in disposable income. b. A decrease in disposable income. c. Legislation making credit harder to obtain. d. Lower tax rates. e. A technological breakthrough.
Technological unemployment is a macroeconomic phenomenon that occurs when
A) unemployment changes due to the effects of technology in high-technology industries. B) unemployment changes due to the effects of monetary and fiscal policy in the New Economy. C) hysterisis. D) Eurosclerosis. E) unemployment changes as a result of technological change.
Suppose the actual unemployment rate increases. This will cause
A) an upward shift in the WS curve. B) a downward shift in the WS curve. C) an upward shift in the PS curve. D) a movement along the WS and the PS curves. E) none of the above
Suppose s = 0.18, Y = 4000, K = 6200, n = 0.02, and d = 0.08. This makes national saving ________ than steady-state investment, so that the amount of capital per worker is ________
A) greater, rising B) greater, falling C) less, rising D) less, falling