Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
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The major reasons why people immigrate into the U.S. include the following, except:
A. Taking advantage of superior economic opportunities B. Escaping religious or political oppression in their home countries C. Reuniting with family members who are already U.S. immigrants D. Being kicked out of their home countries
If the Fed lowers the reserve requirement, then this
A) decreases excess reserves, causes banks to reduce their loans, and decreases the money supply. B) increases excess reserves, encourages banks to make more loans, and increases the money supply. C) decreases excess reserves, causes banks to reduce their loans, and increases the money supply. D) increases excess reserves, causes banks to reduce their loans, and increases the money supply.
Students who talk loudly with each other in class
A) create an externality because other students cannot follow the lecture as well. B) disturb nobody. C) benefit the other students in class because they engage in conversation. D) only create an externality if they talk about something unrelated to class.
Unbundling mail services raises efficiency
Indicate whether the statement is true or false