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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Which of the following is an example of free riding?
A) An individual who sneaks inside a music concert B) A consumer who buys his groceries from a nearby store C) A tax payer who exercises in the public park near his house D) A club member who makes voluntary contributions to the club
Ramona has decided that she will only purchase a one-year Treasury bill with a face value of $15,000 if she receives an interest rate of 4.125%. How much will Ramona end up paying for this Treasury bill?
A) $12,447.66 B) $14,381.25 C) $14,405.76 D) $15,618.75
A pattern in the coefficients of the time fixed effects binary variables may reveal the following in a study of the determinants of state unemployment rates using panel data:
A) macroeconomic effects, which affect all states equally in a given year. B) attitude differences towards unemployment between states. C) there is no economic information that can be retrieved from these coefficients. D) regional effects, which affect all states equally, as long as they are a member of that region.
Marginal revenue product for a price taker equals
a. MP ? P b. MP/MRC c. MP ? MRC d. MRC/MP e. MP/P