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

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When policy makers decide to revalue the currency, such an action generally represents

A) an increase in the pegged value of the domestic currency. B) a decision to let the currency float. C) a reduction in the foreign price level. D) an increase in the domestic price level. E) none of the above

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