Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
You might also like to view...
A common trait of money through history and across cultures is that money
A) was always fiat money. B) was always generally accepted as a means of payment. C) always had mystical properties. D) was always issued by the local government. E) was always based on gold or some other precious commodity.
If two countries specialize,
a. the other countries trading with them cannot specialize b. everyone in both countries gains c. the total of goods produced increases d. the other countries trading with them must specialize as well e. all goods will be produced in both states
Describe the difference between the employment rate and the labor force participation rate (LFPR). Under what circumstance would the two be equal to one another?
If consumption spending increases from $758 to $767 billion when disposable income increases from $912 to $927 billion, it can be concluded that the marginal propensity to consume is:
a. 0.4 b. 0.5 c. 0.7 d. 0.6