In the Solow growth model, investment is a ________ variable and depreciation is a ________ variable

A fixed exchange rate is one that is determined by market conditions

Indicate whether the statement is true or false

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