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.

What role does the price elasticity of demand play in markup pricing, i.e., how does it affect the firm's ability to mark up price over marginal cost?

What will be an ideal response?

In contrast to the United States, countries like Japan and Germany have

a. higher rates of saving and investment. b. higher rates of saving but lower rates of investment. c. lower rates of saving but higher rates of investment. d. lower rates of saving and investment.