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.

The average variable cost curve will shift upward if:

a) there is a technological advance. b) the price of the variable input decreases. c) the price of the variable input increases. d) there is an increase in fixed cost. e) the price of output increases.

An argument against the use of tariffs to keep out the production of "cheap" foreign labor is that:

A) wage rates and labor productivity are directly related. B) product prices and labor costs are unrelated. C) there is no significant relationship between labor productivity and wage levels. D) they don't work.