Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
You might also like to view...
When there is an increase in demand,
A. the demand curve shifts to the right of the original demand curve. B. the demand curve rotates clockwise. C. the demand curve shifts to the left of the original demand curve. D. the demand curve rotates counterclockwise. E. a lower price has increased the amount of the good that consumers will buy.
Explain what a black market is and how it functions. What is a black market generally a response to?
What will be an ideal response?
Monopsonistic exploitation refers to
A) the payment to the resource equal to MFC. B) the payment to a resource less than MRP. C) the payment to a resource equal to MRP. D) the payment to a resource above MRP.
If an auto manufacturer installs antilock brakes on a vehicle, and that alone causes the price to increase by $100, the BLS
A. does not count that increase as part of the inflation rate. B. counts only half of the price increase as part of the inflation rate. C. subtracts that price increase from the overall inflation rate. D. counts that increase as part of the inflation rate.