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
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The economy is in equilibrium, TP = TE, and Real GDP is $4,000 billion. The MPC is 0.60, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending rises by $13 billion. As a result, the __________ curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and
Real GDP __________ by __________. A) TE, downward, rise, increase, rises, $32.5 billion B) TE, upward, fall, increase, rises, $101.5 billion C) TE, upward, fall, decrease, rises, $32.5 billion D) TE, upward, fall, increase, rises, $32.5 billion E) TP, upward, fall, increase, rises, $101.5 billion
Figure 10.2 shows a monopolist's demand curve. Suppose that the marginal cost is $6 for all units and the current output level is 4 units. Then which of the following is true?
A. The marginal revenue is less than the marginal cost. B. The price is greater than the average total cost. C. The firm is producing the profit maximizing level of output. D. All of these are correct.
Refer to the above table. What does the marginal physical product equal when the amount of labor goes from 12 to 13 units?
A. 7 B. 76 C. 69 D. 10
Refer to the information provided in Figure 18.1 below to answer the question(s) that follow.
Figure 18.1Refer to Figure 18.1. Suppose that the Lorenz curve ran along the ________ to 100%, then became ________ to 100%. This would mean that only one family earned all the income.
A. Y-axis; horizontal B. Y-axis; vertical C. X-axis; vertical D. X-axis; horizontal