Starting from Long-Run Equilibrium, a Large Increase in Government Purchases

question 44

Multiple Choice

Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ______ gap in the short-run and ____ inflation and ____ output in the long-run

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

Explain the classification of factory employees' work in producing goods.

Distinguish between direct and indirect materials, and labor in the cost structure.

Identify the three elements of production cost.

Define managerial judgment and its significance in decision-making.

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Definitions:

Renewable

Renewable resources are natural resources that can replenish themselves over time and do not diminish, such as solar, wind, and hydroelectric power.

Remote Locations

Areas that are far away from populated centers or difficult to access.

Gold-bearing Conglomerate

A sedimentary rock consisting of rounded pebbles and mineral fragments, among which gold particles are present.

Caldera

A large, cauldron-like depression that forms following the eruption and collapse of a magma chamber beneath a volcano.