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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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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