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
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When market wages increase in a perfectly competitive market, then
A) the marginal factor cost increases. B) the marginal product increases. C) the marginal factor cost decreases. D) the marginal product decreases.
An inflationary gap occurs when aggregate expenditures are too high to achieve full employment
a. True b. False Indicate whether the statement is true or false
The graph that shows the relationship between the aggregate quantity of output supplied by all the firms in an economy and the overall price level is
A. the aggregate demand curve. B. the production possibilities frontier. C. the aggregate production function. D. the aggregate supply curve.
Ceteris paribus, a decrease in the number of firms selling calculators will result in
A. A decrease in the supply of calculators. B. A decrease in the demand for calculators. C. An increase in the supply of calculators. D. An increase in the demand for calculators.