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
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The process by which investment banks guarantee a certain price to a firm issuing stocks or bonds is known as:
A) underwriting B) securitization C) proprietary trading D) microlending
Consider the salary of Mary Sue Nelson, a sales agent for Plain Truth Advertising. She has an effort cost of C = e2 and a reservation wage of $1,500 so that wage package is W = 1,500 + 0.2 Q where the CEO sets the incentive at 0.2 and Q = 200 e. If the CEO increases the incentive from 0.2 to 0.25, what happens to Nelson's effort? Will profits rise or fall?
What will be an ideal response?
If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is:
A. 0.25. B. 4. C. 15. D. 100.
Those goods produced by the economic system that are used as inputs in the production of future goods and services are known as capital.
Answer the following statement true (T) or false (F)