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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A shift in the supply curve for gasoline in the United States would result if
a. people decided to travel more by automobile. b. the OPEC nations decided to stop sales of crude oil to the United States. c. the price of gasoline increased. d. the price of gasoline decreased.
A. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 5%?
b. If a stock is expected to pay an annual dividend of $20 forever, what is the approximate present value of the stock, given that the discount rate is 8%? c. If a stock is expected to pay an annual dividend of $20 this year, what is the approximate present value of the stock, given that the discount rate is 8% and dividends are expected to grow at a rate of 2% per year?
Putting a decision into action is called?
a. Visualization b. Implementation c. Satisficing d. Reactivity
For a firm, we define the short run as a period of time during which
A) at least one input cannot be changed. B) all inputs can be changed. C) only the plant size can be changed. D) all inputs cannot be changed.