Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. lower; higher
D. higher; potential
Answer: D
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The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, the equilibrium output will be
A) 2,000 tons. B) 3,000 tons. C) 4,000 tons. D) 5,000 tons.
In the short-run, an appreciation in the value of the U.S. dollar will tend to cause ________
A) a decrease in the level of income and higher inflation B) an increase in the level of income and higher inflation C) an increase in the level of income and lower inflation D) a decrease in the level of income and lower inflation
Choices need to be made because of all of the following, except limited _____
a. resources b. income c. wants d. time e. availability of goods
An economic boom experienced during a certain year in a country that increases actual GDP beyond potential GDP will result in: a. unemployment
b. inflation. c. deflation. d. increased fiscal spending.