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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A nation's gross domestic product (GDP) ________.
A. is always some amount less than its net domestic product B. can be found by summing C + I + G + NX C. is the dollar value of the total output produced by its citizens, regardless of where they are living D. can be found by summing C + S + G + NX
According to the principle of subsidiarity, in which of the following areas should the authority for making decisions be taken from national governments and given to the EU?
A) Pollution of a trans-national waterway B) Limits on the hours retails stores are allowed to be open C) Highway traffic laws D) Recycling requirements on packaging E) All of the above.
How is a monopolistically competitive firm likely to respond to fluctuations in demand in the short run?
A) by selling more or less at the posted price B) by changing prices C) by reducing menu costs D) by increasing menu costs
The deregulation of the airlines industry lead to which of the following?
a. Higher prices and more flyers b. Lower prices and fewer flyers c. Lower prices and more flyer d. Higher prices and fewer flyers