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
You might also like to view...
Allegiant Air holds a natural monopoly on most of the routes it serves in the United States. Allegiant Air's marginal revenue will ________ when its total revenue ________
A) equal $0; is maximized B) be negative; is maximized C) be positive; is maximized D) inelastic; is increasing E) elastic; is increasing
A federal budget deficit occurs when: a. there is deflation
b. federal government purchases exceed net taxes. c. there is inflation. d. aggregate demand is greater than aggregate supply. e. aggregate supply is greater than aggregate demand.
U.S. government policy to stimulate research and development activities would be most likely to succeed if it involved
a. interest rate policy. b. corporate tax policy. c. personal income tax policy. d. payroll tax policy.
The figure below illustrates the market for British pounds. D£ and S£ are the nonofficial demand and supply curves of the British pounds, respectively.
A downward movement along the vertical axis would correspond to a(n) ________ of the U.S. dollar.
A. arbitrage B. appreciation C. swap D. depreciation