Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential
B. expansionary; lower; potential
C. expansionary; higher; potential
D. recessionary; lower; lower
Answer: A
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To economize means to
A) allocate available resources in a way that yields the most value to the economizer. B) behave in a selfish rather than generous manner. C) conserve as much as possible for future use. D) put economic theory to work. E) save rather than spend.
All of the following are true regarding managerial diseconomies except which one?
A) Managerial diseconomies are a cost associated with vertical integration. B) An increase in the required expertise of managers is a type of managerial diseconomy. C) Managerial diseconomies incentivize vertical integration. D) Increased complexity of the firm is a type of managerial diseconomy.
The price elasticity of demand for a particular good is influenced by which of the following factors?
a. b and c. b. The income of the buyers. c. The availability of substitutes. d. The level of competition among sellers. e. How many uses the good has.
A 2005 quarter is called token money because: a. it is legal tender
b. its metal value exceeds its face value. c. there is less than a quarter's worth of metal in it. d. it can be used in the subway. e. it is generally not accepted in exchange.