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.

Which of the following statements is a normative statement?

A) Military spending as a percent of government spending decreased by 5 percent in the 1990s. B) Every American household should have health care insurance coverage. C) Welfare reform has decreased the amount the government spends on welfare. D) Fewer people are unemployed this year than last year. E) The price of computers fell last year.

When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost

A) increases. B) decreases. C) remains constant. D) might increase, decrease, or remain constant depending on how much people value the additional units of the good. E) cannot be predicted.