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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Suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively
The current long-run equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. a. Derive the (linear) long-run demand and supply equations. b. Suppose the long-run supply curve you derived above consists of competitive supply plus the quantity of OPEC supply. If the long-run competitive supply (not including OPEC's production) is: QS = 7.78 + 0.29p, what must be OPEC?s level of production in this long-run equilibrium to maintain the price of $30?
An international organization created at the Bretton Woods conference in 1944 that helps coordinate international financial flows and can arrange short-term loans between countries is called the:
A) World Bank. B) International Monetary Fund. C) U.S. Treasury. D) U.S. Agency for International Development.
Real-business-cycle theory suggests that changes in:
A. Monetary policy is the single most important cause of macroeconomic instability B. Investment spending will have a direct and significant effect on aggregate demand C. Technology and resources affect productivity, and thus the long-run growth of aggregate supply D. The velocity of money is gradual and predictable, and thus is able to accommodate the long-run changes in nominal GDP
To protect the environment, governments in the United States have mainly used
A. legally enforceable direct controls on pollution. B. taxes on goods whose production creates pollution. C. direct taxes on emissions. D. discretionary guidelines suggested to polluting firms.