Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. higher; potential
D. lower; higher
Answer: A
You might also like to view...
Asymmetric information in financial markets exists when: a. borrowers reveal their financial details to banks before borrowing funds
b. borrowers know more about their ability to repay loans than lenders do. c. lenders know more about borrowers than borrowers know about themselves. d. borrowers pay off a loan before it is due. e. borrowers and lenders have equal information about borrower creditworthiness.
Average fixed costs
A) are always rising with increases in production B) are dependent on marginal costs. C) are dependent on average variable costs. D) are always falling with increases in production.
What are some of the demerits of decentralization?
What will be an ideal response?
The demand for labor is downward sloping because of:
a) Diminishing marginal returns to labor. b) Rising price. c) Falling marginal cost. d) Rising marginal physical product.