Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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Since a monopoly can set any price it wants, it always makes a profit
Indicate whether the statement is true or false
Suppose Chip's Chips produces bags of potato chips that sell for $3 a bag. If they sold 12,000 bags and incurred total costs of $30,000, what was the company's profit?
A. $6,000 B. $42,000 C. $36,000 D. $18,000
The Scarcity Principle states that:
A. society will eventually run out of resources. B. with limited resources, having more of one thing means having less of another. C. people don't have enough money to buy what they want. D. some countries have fewer resources than others.
One possible constraint to limitless growth is
A. A limited supply of arable land. B. The fact that technological advance cannot go on forever. C. Irreversible environmental damage. D. A capital stock that grows too quickly.