There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run
A) decrease; decrease further B) increase; decrease to its initial value
C) increase; increase further D) decrease; increase to its initial level
D
You might also like to view...
Refer to Scenario 14.1. Marco and Lisette decide to help each other out and agree to split any medical bills from their doctor. With this new arrangement, Lisette's dominant strategy will give her a net benefit of
A) $45. B) $75. C) $120. D) $150.
If there is an increase in the price of broccoli because of disastrous weather that destroys about half of this year's spinach crop, which of the following could be TRUE?
A) The cross elasticity of demand between spinach and broccoli is negative 1.25. B) The demand curve for broccoli has shifted rightward and the cross elasticity of demand between spinach and broccoli is positive. C) The demand curve for spinach has shifted to the leftward and the cross elasticity of demand between spinach and broccoli is positive. D) The demand curves for spinach and broccoli have become more cross inelastic.