Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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An increase in the price level shifts the aggregate planned expenditure curve downward and results in a movement along the aggregate demand curve
Why does an increase in the price level result in a shift in the aggregate planned expenditure curve rather than a movement along it?
When the government imposes a price ceiling on a good whose price is too high,
a. surpluses are created. b. supply will increase to meet the demand. c. rationing is not necessary. d. quantity demanded of the good will fall. e. chronic excess demand occurs.
Workers in a nearby pizza restaurant may indirectly enjoy income increases from a nearby construction process
a. True b. False Indicate whether the statement is true or false
Depletable resource prices change over time depending on
A. how the technology of resource extraction changes. B. the prices of publicly traded stock. C. the number of countries that have nationalized production. D. the prices of substitutable renewable resources.