Starting from long-run equilibrium, a decrease in autonomous investment results in output in the short run and output in the long run.

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

Answer: A

Economics

If the market price faced by a perfectly competitive firm increases, in the short run how does the firm respond?

What will be an ideal response?

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Economics

What determines whether the industry long-run supply curve is upward sloping or horizontal?

What will be an ideal response?

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Economics

Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.