Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. higher; potential
D. lower; higher
Answer: A
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Describe the two major categories of public assistance
What will be an ideal response?
If two countries begin trade and both produce a product subject to internal economies of scale, then the country with the ________ rate of production will ________ production until it controls ________ of the market
A) higher; increase; 100% B) higher; increase; 50% C) lower; increase; 100% D) lower; increase; 50% E) higher; decrease; 0%
Measured as a share of the economy, government expenditures:
a. have been between 10 and 15 percent of the U.S. economy since 1930. b. have been between 20 and 25 percent of the U.S. economy since 1930. c. rose from less than 10 percent in 1929 to about 35 percent currently. d. declined from more than 50 percent in 1929 to approximately 25 percent currently.
If the government wants to manipulate the equilibrium price, it will normally create a price floor or price ceiling; if the government want to manipulate the equilibrium quantity, it will normally impose taxes or award subsidies
Indicate whether the statement is true or false