The basic way that one piece of land differs from another is in its _________________.

Suppose the U.S. economy is operating at potential output. A negative supply shock that is accommodated by an open market purchase by the Federal Reserve will cause ________ in real GDP in the long run and ________ in inflation in the long run, everything else held constant.

A) no change; an increase B) no change; a decrease C) an increase; an increase D) a decrease; a decrease

The supply-side economists expect that a cut in the marginal income tax rate, with lost revenues made up by a cut in government spending, would

a. increase output. b. decrease output. c. leave output unchanged. d. affect output but the direction of the effect is uncertain.