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. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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Suppose the government increases lump-sum taxes. This causes
A) consumption spending to decrease and spending on imports to increase. The effect on aggregate demand depends on whether domestic spending or spending on imports decreased the most. B) disposable income to decrease, which causes consumption spending to decrease and aggregate demand to decrease. C) government spending to decrease, which causes aggregate demand to decrease. D) disposable income to decrease, which causes aggregate supply to decrease.
According to current projections, in about 2034, the Social Security trust fund will
A) own all the government bonds that have been issued. B) own about half of all the stock issued on the New York Stock Exchange. C) run out of assets. D) start to run deficits.
A monopoly is a firm that:
A. is the sole producer of a good or service with no close substitutes. B. is the sole producer of a good or service with many close substitutes. C. is the producer of a good or service with just a few large competitors. D. produces a good or service that is identical to many others sold in the market.
When an organization sets up a self-contained unit, the risk management teams at the divisional levels become redundant
Indicate whether the statement is true or false