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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Net worth can perform a similar role to
A) diversification. B) collateral. C) intermediation. D) economies of scale.
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What will be an ideal response?
If stock prices follow a random walk,
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What is a market surplus, and how does the market attempt to resolve a surplus?
What will be an ideal response?