Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
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Human capital is
A. the factories and machinery made by workers. B. the talents, training, and education of workers. C. the financial resources available to humans for investment. D. the factories and machinery used by humans in the production process.
A free rider is a person who ________
A) can produce a good at a very low cost B) only consumes products provided by the government C) receives the benefit of a good without paying for it D) purchases products available for discounts
The difference between income and consumption is
a. rent b. profit c. saving d. opportunity cost e. roundabout consumption
Union membership will be more attractive from the worker's viewpoint if
a. the demand for the union labor is highly inelastic. b. the supply of union labor is highly elastic. c. only a few of the firms in the industry are unionized. d. the membership dues charged by the union are extremely high.