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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The significantly high rates of inflation in the 1970s occurred, in part,
A. because of increased petroleum prices. B. due to high unemployment. C. despite falling gasoline prices. D. due to restrictive monetary policies.
Explain why the cross elasticity of demand for substitute goods is positive and the cross elasticity of demand for complements is negative
What will be an ideal response?
Along a production possibilities curve that is concave to the origin, the opportunity cost of production of the good on the horizontal axis ____ as we move down along the curve
a. Decreases b. Increases c. remains constant d. first decreases, then increases
Answer the following statements true (T) or false (F)
1. Macroeconomics and microeconomics are concerned with the well-being of only people with jobs and high incomes; they just examine it from a different perspective. 2. Economies that are primarily market-oriented have fewer regulations. 3. The economics approach can be a useful way to analyze and understand the tradeoffs of economic decisions. 4. Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price. 5. Economists use the term supply to refer to the amount of some good or service a customer is willing to supply at each price.