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.
A. expansionary; higher; higher
B. expansionary; higher; potential
C. recessionary; higher; potential
D. recessionary; lower; lower
Answer: B
Economics
You might also like to view...
On average, collective bargaining increases wages
a. true b. false
Economics
In general, the structure of a business firm
A) looks like a market. B) looks like a flat network. C) is largely determined by legal considerations. D) seems more like a central planning agency than a market.
Economics