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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Which of the following statements is true?
A) The GDP per capita has almost been constant since the beginning of the 20th century in most of the western world. B) The average GDP per capita of a nation at a particular point of time is not the same as the income of all individuals in that nation. C) GDP per capita decreases with a decrease in population and increases with an increase in population, GDP remaining unchanged. D) GDP per capita is a useful to tool to study the disparities in standards of living in a country.
Refer to the figure above. What is the equilibrium quantity of labor hired by the firm when the wage rate is $4 per hour?
A) 10 hours B) 20 hours C) 50 hours D) 70 hours
The distribution of income typically refers to how income is distributed across the population ________. Income mobility looks at how a person or family's income changes ________
A) over a lifetime; each year B) by age group; by education level C) by race and gender; based on the state of the economy D) in a particular year; over time
In the above figure, if the firm is producing Q1 units at a price P1, the firm should
A) increase output and decrease price. B) decrease output and increase price. C) not change output or price. D) shut down.