Based on the data in the table above, the efficient level of output equals

Suppose a share of stock is expected to pay an annual dividend of $12 forever. At a discount rate of 9.4 percent, the share's market price should be

A) $12.77. B) $13.13. C) $112.80. D) $127.66.

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