Which of the following is most likely to result in a temporary spurt in the growth of real output that cannot be maintained in the long run?
a. an anticipated increase in aggregate demand
b. an unanticipated increase in aggregate demand
c. an increase in long-run aggregate supply (LRAS)
d. an increase in resource prices relative to product prices
B
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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
Economics is best defined as the science of choice and how people cope with
A) differences in wants. B) differences in needs. C) scarcity. D) different economic systems.
Different values are not a reason for disagreement among economists
a. True b. False Indicate whether the statement is true or false
To prevent people paying a higher percentage of their income in taxes even when their real incomes have not changed, Congress:
A. implemented a flat tax. B. indexed the income tax brackets to the CPI. C. reduced the capital gains tax. D. deflated the income tax brackets to the CPI.