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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A monopolist can charge whatever price it wants and can therefore reap phenomenal profits
a. True b. False Indicate whether the statement is true or false
If a bank's total assets are $150 million and total liabilities are $110 million, the bank's net worth is
a. $15 million b. $260 million c. $40 million d. -$40 million e. $5 million
Stagflation can be defined as a combination of ____
a. economic migration and inflation b. economic aggregation and deflation c. economic stagnation and inflation d. economic aggregation and inflation
In considering the net effect of expansionary fiscal policy on the trade deficit, the:
A. income and price effects work in the same direction, so the trade deficit is decreased. B. price effect offsets the income effect. C. income and price effects work in the same direction, so the trade deficit is increased. D. income effect offsets the price effect.