Starting from a long-run equilibrium, a reduction in potential output leads to ________ gap in the short run and to a ________ rate of inflation in the long run.

A. a recessionary; higher
B. an expansionary; higher
C. an expansionary; lower
D. a recessionary; lower


Answer: B

Economics

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Suppose the price of water rose sharply. Other things constant, what is the least likely to occur?

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For lock-in to be an effective competitive strategy, a firm must successfully raid the customer base of competing firms on a regular basis

Indicate whether the statement is true or false

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If a person can make $70,000 as an accountant, $60,000 as a chef, $20,000 as a mechanic, and nothing as an opera singer, he or she has a comparative advantage in

A) accounting. B) being a chef. C) being a mechanic. D) opera singing.

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Which of the following are implicit costs for a typical firm?

a. insurance costs b. electricity costs c. opportunity costs of capital owned and used by the firm d. cost of labor hired by the firm e. the cost of raw materials

Economics