If an increase in prices increases total revenue for a product in the short run, in the long run, it will:
a. Increase total revenue by more
b. Increase total revenue by less.
c. Decrease total revenue.
d. Either b. or c. could result in the long run.
d
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The best case scenario for fiscal policy is during a:
A. boom caused by an aggregate demand shock. B. recession caused by an aggregate demand shock. C. boom caused by a real shock. D. recession caused by a real shock.
What is the "reverse causality" problem in determining cause and effect?
A) It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Z that caused a change in variable Y. B) It is a problem that arises when two variables are inter-connected so that a change in variable X causes a change in variable Y, and a change in variable Y causes a change in variable X. C) It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X. D) It is a problem that occurs when one observes that a change in variable X caused a change in variable Y which caused a change in variable Z and concludes that a change in variable X caused a change in variable Z.