Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential
B. recessionary; higher; potential
C. recessionary; lower; lower
D. expansionary; higher; higher
Answer: A
Economics
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What will be an ideal response?
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Which of the following would cause the demand for labor to change?
A. a change in the price of the good produced B. a change in the cost of living C. changes in the wage rate D. movements along the labor demand curve
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