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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A) strategic dependence among firms in the industry B) product differentiation C) barriers to entry D) marginal cost pricing.
Compounding is:
A. the process of accumulation of additional interest paid on interest that has already been earned. B. the process of adding the percentage of interest times your initial principal yearly. C. the process of deposits steadily increasing a set amount annually. D. None of these statements is true.
Arrow's impossibility theorem illustrates the difficulties in creating the perfect voting system
a. True b. False Indicate whether the statement is true or false
Which of the following is a positive microeconomics statement?
A) The central bank should increase the nation's money supply. B) The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. C) Ford Motor Company's new advertising campaign ended up hurting General Motors's sales. D) The local government ought to spend more on recreational activities.