Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher
B. expansionary; higher; potential
C. recessionary; higher; potential
D. recessionary; lower; lower
Answer: B
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Does history suggest that most technological progress is labor-saving or labor-augmenting?
Government ownership of property and resources in the United States is
A. about as common as it is in European countries. B. widespread; the United States is a leader in the amount of government ownership of resources. C. relatively rare; the United States is mostly privatized. D. rare but has been increasing rapidly as the United States catches up to other countries.
What are the sources of a country's comparative advantage?
What will be an ideal response?
It is possible to analyze education decisions in a manner similar to the decision to acquire more
a. capital. b. leisure. c. work. d. goods and services.