Suppose a firm acts to minimize the cost of producing 500 units of output and determines this cost to be $25,000. Then, if the firm acts to maximize output for a total cost of $25,000, the maximum output attainable is
A) 500.
B) less than 500.
C) more than 500.
D) unknown.
A
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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
Gross domestic product is a measure of:
a. market value of a nation's capital assets (physical capital). b. expenditures on and sales revenues derived from all goods and services exchanged during a period. c. market value of the output produced during a period. d. asset holdings of people and the happiness that they derived from the ownership of those assets.
If the U.S. government repaid its multitrillion debt by printing (i.e., creating) new money, the effect would be to:
a. Lower nominal interest rates. b. Increase aggregate demand, reduce unemployment, and reduce the nation's price level. c. Increase the real risk-free interest rate. d. Wildly inflate prices.
A country has national saving of $100 billion, government expenditures of $30 billion, domestic investment of $80 billion, and net capital outflow of $20 billion. What is its demand for loanable funds?
a. $60 billion b. $70 billion c. $100 billion d. $120 billion