Starting from Long-Run Equilibrium, a Decrease in Autonomous Investment Results

question 45

Multiple Choice

Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.

• A)higher; higher
• B)higher; potential
• C)lower; potential
• D)lower; higher

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Definitions:

McDonaldization

A term referring to the process by which the principles of fast food restaurants, such as efficiency, calculability, predictability, and control, are coming to dominate more sectors of society and everyday life.

Deskilling

The process by which skilled labor within an industry or economy is eliminated by the introduction of technologies or systems that reduce the need for skilled workers.

Economy

The system of production, distribution, and consumption of goods and services within a society.

High Level of Education

Attainment of advanced stages of formal learning, often reflected in degrees or certifications from tertiary or higher education institutions.