Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S1 (point A)
If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point? A) none of the points shown B) B C) C D) E
A Keynesian economist would expect a supply-side tax cut to shift
A. only the aggregate supply curve outward. B. only the aggregate demand curve outward. C. both the aggregate demand and aggregate supply curves outward. D. the aggregate supply curve outward and the aggregate demand curve inward.
Refer to Scenario 17.2. If the threshold educational level y* is set at 20,
A) only individuals in Group K will attain it. B) only individuals in Group M will attain it. C) individuals in both groups will attain it. D) no individuals will attain it. E) some fraction of individuals in each group will attain it.
By 2007 the deficit
a. was out of control and increased substantially soon thereafter. b. seemed under control but increased substantially soon thereafter. c. was out of control but decreased substantially soon thereafter. d. seemed under control and decreased substantially soon thereafter.