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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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
The growth rate of real GDP equals
A) [(real GDP in previous year - real GDP in current year) ÷ real GDP in previous year] × 100. B) [(real GDP in current year - real GDP in previous year) ÷ real GDP in previous year] × 100. C) [(employment in the current year - employment in previous year)/employment in previous year] × 100. D) (real GDP in current year - real GDP in previous year) × 100. E) [(real GDP in current year - real GDP in previous year) ÷ real GDP in current year] × 100.
Elasticity is:
A) the sum of the percentage change in two variables. B) the difference of the percentage change in two variables. C) the product of the percentage change in two variables. D) the ratio of the percentage change in two variables.
Early American manufacturers were particularly concerned about minimizing:
a. raw material costs. b. labor costs. c. state-levied taxes on profits. d. energy costs.