Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; potential
C. higher; higher
D. lower; higher
Answer: B
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________ is maximized in a competitive market when marginal benefit equals marginal cost
A) Selling price B) Deadweight loss C) Marginal profit D) Economic surplus
An increased supply of U.S. dollars on the foreign exchange market, all else equal, will result in an appreciation of the U.S. dollar
Indicate whether the statement is true or false
When the dollar rises relative to other currencies,
A) foreign goods are more expensive in terms of dollars. B) foreign currency is more expensive in terms of dollars. C) U.S. goods become more expensive to foreigners. D) foreign currency is more expensive in the United States, but foreign goods are cheaper.
The marginal propensity to consume is
A. real saving/real disposable income. B. real consumption/real disposable income. C. change in real saving/change in real disposable income. D. change in real consumption/change in real disposable income.