Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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Refer to the figure above. Social surplus can be increased by ________
A) increasing output above 13 million units B) reducing output below 13 million units C) increasing the price above $22 D) charging a price of $22
Referring to the graph above, an economic variable that had peaked in December 1911, November 1914, and February 1919 is likely a ________ variable
A) leading countercyclical B) leading procyclical C) lagging countercyclical D) lagging procyclical E) none of the above
Which rationing system leads to the most efficient use of available resources?
A) free market B) physical force C) first come, first served D) random assignment
Which of the following is true of nominal GDP?
a. It acts as an indicator of the general price level in the economy. b. It measures the real level of output in the economy. c. It measures national output based on the current year's prices. d. It tends to rise by a smaller amount than real GDP when the general price level increases. e. It measures changes in the output of intermediate goods and services.