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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Funding for canals came from which of the following sources?
(a) Private investments and tolls (b) Taxes (c) Borrowing on government credit (d) All of the above
Two reasons why a few individuals earn very high pay in the sports and entertainment fields are that their
a. marginal productivity is high and entry into those industries is restricted b. marginal productivity is high and the cross-elasticity of demand between their services and the services of other employees is also high c. marginal productivity is high and there is open competition for their talents d. wage elasticity of supply is high and there is open competition for their talents e. marginal productivity is high and they are prohibited from changing employers
The classical school of thought believed that ______.
a. Say’s law was incorrect b. Keynes’s macroeconomic model was correct c. an economy can experience prolonged unemployment d. wages and prices adjust quickly to changes in supply and demand
M1 money includes all but which one of the following?
A. checkable deposits B. savings accounts C. paper money D. coins