Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential
B. expansionary; lower; potential
C. expansionary; higher; potential
D. recessionary; lower; lower
Answer: A
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Use the following table to answer the next question.All figures below are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$240$244250250260256270262280268290274300280310286320292When there is no investment in this private closed economy (an economy with only a private sector and no international trade), the equilibrium level of real GDP will be
A. $240 billion. B. $270 billion. C. $260 billion. D. $250 billion.
In the above figure, a perfectly competitive market will have a price of ________, and a single-price monopoly will have a price of ________
A) P1 and quantity of Q1; P2 and quantity of Q2 B) P2 and quantity of Q2; P1 and quantity of Q1 C) P3 and quantity of Q3; P1 and quantity of Q1 D) P2 and quantity of Q2; P3 and quantity of Q1 E) P2 and quantity of Q1; P1 and quantity of Q1
Describe a grim trigger strategy.
What will be an ideal response?
Evaluate the argument: “Restricting imports from other nations will save U.S. jobs.”
What will be an ideal response?