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. higher; higher
B. lower; potential
C. higher; potential
D. lower; higher


Answer: C

Economics

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The tax incidence of a specific tax or ad valorem tax is influenced by

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Based on the given figure, the economy is initially in long-run equilibrium at point A. If there is a favorable supply shock that increases potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point:

A. E. B. C. C. B. D. D.

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Shortly after the 2012 election, the AMT was reformed to

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