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...
The demand for U.S. dollars represents:
A) the demand for U.S. goods and financial assets by households and firms outside the United States. B) the demand for foreign goods and financial assets by households and firms within the United States. C) the demand for U.S. goods and financial assets by households and firms within the United States. D) the willingness of households and firms that own dollars to exchange them for foreign currency.
When economists say the supply of a product has decreased, they mean that:
a. the supply curve has shifted to the left. b. the product price has decreased, and as a consequence, suppliers are producing less of the product. c. producers are now willing to sell more of this product at each possible price. d. the supply curve has shifted to the right.
At the point where consumption equals disposable income, the average propensity to consume equals 1
a. True b. False Indicate whether the statement is true or false
A rapid increase in the number of workers, other things the same, is likely in the short term to
a. raise real GDP per person, but decrease real GDP. b. decrease both real GDP and real GDP per person. c. raise both real GDP and real GDP per person. d. raise real GDP, but decrease real GDP per person.