Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
Economics
You might also like to view...
Which of the following inputs is normally considered to be variable in the short run?
A) labor B) capital C) money D) time
Economics
A monopolist maximizes profits by producing where which of the following occurs?
A. MC = P. B. AC = P. C. MC = MR. D. AC = AR.
Economics
The total market value of all final goods and services produced in a country in a year is:
A. NDP. B. GDP. C. NNP. D. GNP.
Economics
Suppose that under its collective bargaining agreement, the XYZ Co. can only hire union members in good standing at the time of hiring. XYZ Co. is
A. a company union. B. an open shop. C. a union shop. D. a closed shop.
Economics