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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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
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