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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Suppose a firm lowers its price in order to increase sales. The lower price will reduce the revenue the firm earns on the:
A. marginal units. B. infra marginal units. C. surplus units. D. incremental units.
Which of the following statements is correct?
a. NASDAQ is an important stock exchange in the United States. b. The Standard & Poor's 500 Index and the New York Stock Exchange are two examples of stock indexes. c. The most significant influence on the demand for a corporation's stock is the number of shares of the stock that the corporation has issued. d. All of the above are correct.
If technological innovation occurs when a firm is experiencing diseconomies of scale:
A. short-run average total costs will fall as output expands. B. the long-run average total cost curve will shift down but will still rise as output expands. C. long-run average total costs will remain the same as output expands. D. product prices will rise, leading to inflation.
In Figure 1.6, at which of the following points would the opportunity cost of producing one more SUV be highest?
A. A. B. B. C. C. D. F.