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
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Traffic congestion is an example of
A) a shortage of roadway space. B) a surplus of automobiles. C) a surplus of drivers. D) a surplus of people.
If the real GDP of a developed country doubles in 48 years, the average annual growth rate in real GDP must be _____
a. 1.5% b. 3.5% c. 0.67% d. 0.012% e. 24%
Holding all other forces constant, when the price of gasoline rises, the number of gallons of gasoline demanded would fall substantially over a ten-year period because
a. buyers tend to be much less sensitive to a change in price when given more time to react. b. buyers tend to be much more sensitive to a change in price when given more time to react. c. buyers will have substantially more income over a ten-year period. d. the quantity supplied of gasoline increases very little in response to an increase in the price of gasoline.
In game theory, the three key characteristics of a game are
A) rules, strategies, and payoffs. B) rules, regulations, and payoffs. C) winners, losers, and rules. D) risks, rewards, and penalties.