The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B
B. recessionary; C
C. recessionary; A
D. expansionary; A
Answer: C
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Explain carefully why the assumption of identical technology worldwide eliminates the classical basis for international trade
What will be an ideal response?
Firm's should raise the price of their goods
a. If the demand for the product is elastic b. If it acquires a firm selling a complement good c. If it acquires a firm selling a substitute good d. Both a and c
Under perfect competition the person that ends up with the ________ unit is the person that values it exactly at its price.
A. last B. first C. marginal D. only
Deregulation of the railroad, airline, and electricity industries has yielded substantial benefits: more competition, lower prices, and improved services.
Answer the following statement true (T) or false (F)