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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If all firms are identical, output prices will never change.
Answer the following statement true (T) or false (F)
From the beginning of 1973 until August 2015, the value of the dollar has ________ relative to the Canadian dollar and ________ relative to the Japanese yen
A) depreciated; appreciated B) appreciated; depreciated C) depreciated; depreciated D) appreciated; appreciated
Quinn's income to spend on either bowling or eating out each month is $100. It costs $10 to bowl for the night and it costs $20 for Quinn to eat at a restaurant. A point on Quinn's budget constraint would be:
A. 4 nights of bowling and 3 trips to the restaurant. B. 3 nights of bowling and 4 trips to the restaurant. C. 2 nights of bowling and 5 trips to the restaurant. D. 10 nights of bowling and 5 trips to the restaurant.
A rise in the price of an input can be expected to lead to a rise in its marginal physical product
a. True b. False Indicate whether the statement is true or false