Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

If the interest rate is 20 percent, the present value of $10,000 to be received 20 years from today is about

A) $6,944. B) $14,400. C) $383,376. D) $261.

Which of the following types of economic regulation is most likely to encourage a natural monopoly to NOT inflate its costs?

A) average cost pricing rule B) rate of return regulation C) price cap regulation D) None of the above encourages cost cutting.