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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The profit-maximizing price charged by a monopolistic competitor is always equal to its average total cost of production
a. True b. False Indicate whether the statement is true or false
Expansionary fiscal policy:
What will be an ideal response?
An approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry is:
A. mandating that information be shared. B. racial discrimination. C. proofing. D. screening.
Final consumer demand for poultry in the US increases (shifts to the right) if
a) consumer income decreases b) the price of chicken decreases c) the price of beef increases d) the price of pork decreases