Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) gap in the short-run and inflation and output in the long-run.

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

Answer: C

Economics

In the above table, the marginal product of the 7th worker is 6. What is the total product when 7 workers are employed?

A) 68 B) 70 C) 72 D) 76

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Economics

Short run expenditure patterns may change very little when income declines

Indicate whether the statement is true or false

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Economics

Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.