The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A
B. recessionary; C
C. recessionary; B
D. expansionary; A
Answer: D
You might also like to view...
Economic growth can be pictured in a production possibilities curve diagram by
A) shifting the production possibilities curve in. B) shifting the production possibilities curve out. C) making the production possibilities curve straighter. D) moving from a point inside the production possibilities curve to a point on the curve.
The GDP deflator: a. takes government purchases into account, unlike the CPI
b. takes business investment purchases into account, unlike the CPI. c. is generally used to adjust nominal GDP to calculate real GDP. d. All of the above are true.
How is monopolistic competition similar to perfect competition?
a. Both have market power. b. Both have easy entry and exit. c. Both have few sellers. d. Both have differentiated products.
If crop dusting on your farm causes your neighbors to have sore throats, then crop dusting is creating
A) only explicit costs. B) opportunity costs. C) external costs. D) internal costs.