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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What are the macroeconomic consequences of a budget deficit when the economy is operating at full employment? Be sure to discuss the effects in the short-run and in the long-run
What will be an ideal response?
A side effect of an action that adversely affects the well-being of others is called a
A. complement. B. supplement. C. negative externality. D. marginal cost.
China's economic reforms began in
A) 1960. B) 1978. C) 1991. D) 1998.
Refer to the diagram, assuming that the firm represented is operating on curve TC 0 . What is the user cost of extracting a unit of this resource?
A. $20.
B. $40.
C. $60.
D. It cannot be determined with the information given.