Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential
B. expansionary; lower; potential
C. expansionary; higher; potential
D. recessionary; lower; lower
Answer: A
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Recall the Application about intellectual property in GDP accounts to answer the following question(s).According to the Application, prior to 2013, firm expenditures on research and development and new artistic work were treated as ________ in our GDP accounts.
A. intermediate inputs B. investment C. net exports D. consumption
With a given level of GDP, a decrease in the size of population would cause:
A) GDP per capita to decrease. B) life expectancy to decrease. C) GDP per capita to increase. D) life expectancy to increase.
The short run is a period of time
a. less than one year b. greater than one year c. during which all resources are variable d. during which at least one resource is fixed e. during which at least one resource is variable
Government regulation of working conditions is an example of government as:
A. an owner. B. an actor. C. a referee. D. a dictator.