Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher
B. expansionary; higher; potential
C. recessionary; higher; potential
D. recessionary; lower; lower
Answer: B
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To achieve cost-effectiveness among options that satisfy the benefit objective
a. both PVB and PVC must be minimized b. PVB must be minimized and PVC must be maximized c. PVC must be minimized d. none of the above
State whether each of the following goods is nonrival, nonexcludable, or both:
a. a botanical garden b. a public beach c. a congested interstate highway d. a toll bridge e. street lights
Charging different prices to different consumers for the same product when the price differences are not due to differences in cost is called arbitrage
Indicate whether the statement is true or false
The norms, values, and aspirations of a group are directly observable
Indicate whether the statement is true or false