Starting from long-run equilibrium, the long-run impact(s) of an increase in autonomous consumption, compared to the original equilibrium, is:
A. higher inflation and the same output.
B. lower inflation and the same output.
C. lower inflation and lower output.
D. higher inflation and higher output.
Answer: A
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If the total government expenditure in a country during a particular year amounts to $4.9 million and its total tax collection in the same year is $5.9 million, then:
a. there is a budget deficit of $4 million. b. there is a budget surplus of $10 million. c. there is a budget deficit of $1 million. d. there is a budget surplus of $1 million.
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A real estate salesperson sells a house in 1999 that was built in 1990. How does this transaction get counted in the GDP statistics?
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Most economists support free trade in part because trade restrictions:
A. increase international competition. B. result in larger trade deficits for the nations imposing them. C. reduce international competition. D. provide no revenue for the government.