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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In 2012, real GDP in the United States was below potential GDP. This fact definitely means that
A) the unemployment rate was near 10 percent. B) the unemployment rate was above the natural unemployment rate. C) the economy was in an expansion. D) cyclical unemployment had been decreasing. E) frictional unemployment was negative.
Inflation-targeting means that the central bank is legally required to focus only on keeping inflation high
a. True b. False Indicate whether the statement is true or false
From society's perspective, a possible benefit of a cartel is that it could:
A. provide incentives for the introduction of superior products by competitors. B. not earn economic profits. C. minimize average total costs. D. provide incentives for firms to cooperate in setting price and output.
In the above figure, if the market produces the efficient amount of purses then producer surplus equals
A) triangle bcd. B) triangle adc. C) rectangle bcde. D) trapezoid adec.