Quotas redistribute income from consumers to domestic producers
Indicate whether the statement is true or false
TRUE
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Assume the following cost information about Fred's widget company: Its fixed cost is $27, and its total variable cost is $18 for 1 unit; $33 for 2; $45 for 3; $60 for 4; and $78 for 5 . Given this information: a. average fixed cost rises from an output of four to an output of five
b. average fixed cost is greater than marginal cost for the second unit produced. c. the output level which minimizes average total cost is four units. d. average variable cost rises, but average total cost falls, as output increases from four to five.
If the Fed changes the interest rate, there will be
a. a movement along the aggregate expenditure line followed by a shift in the line b. no movement along the aggregate expenditure line because the effect is on investment c. a shift in the aggregate supply curve d. an increase in the money supply e. a shift in the aggregate expenditure line
Specialization is not affected by the geography of an area
a. True b. False Indicate whether the statement is true or false