Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. Social welfare consequences are ambiguous when two or more manufacturers merge to take advantage of economies of scale. 2. When a monopoly supplier acquires a monopoly manufacturer, the vertical merger intensifies the supplier's use of monopoly power over the manufacturer. 3. A buy-out is more likely to delay a rival's reemergence than is predatory pricing. 4. Economic analysis suggests that resale price maintenance is primarily used by manufacturers to keep prices artificially high. 5. A firm has the incentive to cheat on a cartel agreement only when it fears that other cartel members will also cheat.
In 2013 banks kept reserves equal to about ________ of their assets
A) 37 percent B) 50 percent C) 75 percent D) 25 percent E) 18 percent
For a particular farmer and a single growing season, the amount of seed that is planted would be considered a variable input
Indicate whether the statement is true or false
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.