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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Which of the following is not a characteristic of cost-push inflation?
A. Falling unemployment B. Falling real output C. Automatically self-limiting D. Rising general price level
A government policy that taxes saving in order to discourage saving and encourage spending will
A) slow economic growth. B) speed economic growth. C) create a greater incentive for people to specialize. D) strengthen people's property rights. E) increase the growth rate of capital.
Refer to Figure 22-3. Which of the following would cause an economy to move from a point like A in the figure above to a point like B?
A) an increase in capital per hour worked B) a decrease in capital per hour worked C) an improvement in technology D) a technological regression
Parties who have bought a futures contract and thereby agreed to ________ (take delivery of) the bonds are said to have taken a ________ position
A) sell; short B) buy; short C) sell; long D) buy; long