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

Economics

You might also like to view...

Imagine a duopoly in which two firms, A and B, produce the monopoly profit-maximizing output and equally share the economic profit

If firm A increases its output, the market price ________ and total economic profit of the two firms combined ________. A) falls; decreases B) falls; increases C) rises; decreases D) rises; increases E) falls; does not change

Economics

Explain why the marginal cost curve intersects a U-shaped average cost curve at its minimum point

What will be an ideal response?

Economics

A firm which owns its own equipment and is earning positive economic profits a. is likely earning positive accounting profits

b. is likely earning zero accounting profits. c. is likely earning negative accounting profits. d. could be earning positive or negative accounting profits.

Economics

Putting money into mental categories can:

A. help people organize their expenditures. B. cause irrational behavior. C. cause people to take risks they wouldn't otherwise take. D. All of these are true.

Economics