Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.

A. higher; higher
B. higher; potential
C. lower; higher
D. lower; potential

Answer: B

Economics

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The principal buyers in financial markets are ________

A) financial intermediaries B) nonfinancial businesses C) commercial banks D) individual savers

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Suppose an economy’s real GDP is $700 billion in year 1 and $718 billion in year 2. What is the growth rate of its GDP?

What will be an ideal response?

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