Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher
B. expansionary; higher; potential
C. recessionary; higher; potential
D. recessionary; lower; lower
Answer: B
Economics
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Economists use GDP to determine
A) the economic performance of a country over time. B) the well-being of a country's citizens. C) the financial stability of a nation. D) the overall money supply within a nation. E) all of the above.
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Suppose you're in the trucking business and you purchase a $100,000 truck with a one year loan for the full amount. Ignoring interest payments, what is your fixed cost per month?
a. $10,000 b. $20,000 c. $25,000 d. $12,000 e. $8,333
Economics