Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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Which of the following statements is true?
A) The wages expected by potential workers are independent of their work experience. B) Some people seeking paid jobs may not be able to find employment. C) The wages expected by potential workers are independent of their educational qualifications. D) All people seeking paid jobs are eventually employed.
When the demand for a good is inelastic, that good is likely to have:
A. many close complements. B. few close substitutes. C. many close substitutes. D. few close complements.
A tractor used to prepare land for planting is called
A. land. B. physical capital. C. labor. D. human capital.
The poor, in considering a job offer, face constraints that middle-class job seekers are not subject to
Indicate whether the statement is true or false