Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
You might also like to view...
Refer to the table below. Relative to Free Cows, Happy Cows' marginal cost curve is ________, which makes an accurate forecast ________ valuable to the managers of Happy Cows.
Happy Cows and Free Cows are two separate perfectly competitive dairy farms. The table above shows the respective firms' marginal cost at various production levels.
A) steeper; more
B) flatter; less
C) steeper; less
D) flatter; more
When retail bicycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing plan but cannot observe at less than prohibitive cost, the manufacturer has encountered a problem of ____
a. reliance relationships b. uncertainty c. moral hazard d. creative ingenuity e. insurance reliance
During 2008-2010, the U.S. economy showed signs of a(n)
a. mild recession. b. recessionary gap. c. inflationary gap. d. deflationary gap.
Which of the following statements characterizes government purchases in the United States between 2001 and 2011?
A) Government purchases as a share of GDP have declined. B) Government purchases as a share of GDP have increased. C) Government purchases as a share of GDP have remained constant. D) Government purchases have fluctuated widely over this period.