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...
The shutdown point is the point at which price equals minimum average _____ cost and the quantity produced is that at which average _____ cost is at its _____.
A. variable; variable; minimum B. total; total; minimum C. fixed; fixed; maximum D. total; total; maximum
In long-run equilibrium,
a. perfectly competitive firms in a decreasing-cost industry can earn economic profits b. perfectly competitive firms in an increasing-cost industry can earn economic profits c. perfectly competitive firms in a constant-cost industry can earn economic profits d. perfectly competitive firms can earn only normal profits e. no entry occurs in an increasing-cost perfectly competitive industry
Attempts to keep the economy always within a hair's breadth of full employment is called
a. shock absorption. b. lagging. c. fine tuning. d. crowding out.
Under the classical errors-in-variables (CEV) assumption, the measurement error means that the estimated OLS effect, on average, is closer to zero than the true effect.
Answer the following statement true (T) or false (F)