For an economy starting at potential output, an increase in investment in the short run results in a(n):
A. recessionary output gap.
B. increase in potential output.
C. expansionary output gap.
D. decrease in potential output.
Answer: C
Economics
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A) society's overall welfare. B) the plans that buyers and sellers are making. C) the overall efficiency of the market. D) government policy. E) None of the above.
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What are the terms of exchange and how are these terms related to the price?
What will be an ideal response?
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