Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. higher; potential
D. lower; higher
Answer: A
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Which of the following is NOT necessary for a firm to engage in price discrimination?
A) The firm must be able to identify different types of buyers. B) The firm must be able to separate buyers by preventing resales from one customer to another. C) The firm must produce output for different buyers at different costs. D) The firm must sell a product that cannot be resold.
Average variable cost can be calculated using any of the formulas below except
A) ?(TC - FC)/?Q. B) TVC/Q. C) (TC - FC)/Q. D) (TC/Q) - AFC.
If policymakers are concerned that the economy is in danger of rising inflation because aggregate demand is increasing faster than aggregate supply, the appropriate fiscal policy response is to
A) increase government spending. B) increase taxes. C) increase interest rates. D) use expansionary fiscal policy.
Frederick W. Taylor argued that worker efficiency could be improved by
a. analyzing in detail the movements required to perform a job. b. offering employees quarterly stock options. c. encouraging employees to form company unions. d. introducing to a 5-hour/day, 7-day/week schedule