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
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Monetarists believe that an increase in the money supply will lead to
a. a decrease in investment b. an increase in the interest rate c. a decrease in the price level d. an increase in nominal GDP e. an increase in real GDP
Public choice analysis indicates
a. politicians under representative democracy are led as if by an invisible hand to adopt legislation that enhances the wealth of a nation. b. political structures consistent with economic efficiency tend to emerge naturally from the ordinary political process. c. constitutional rules establishing procedures and limiting the ability of the political process to engage in redistributive activities can improve the economic efficiency of government. d. all of the above are correct.
The United States has less income inequality than most other developed countries.
Answer the following statement true (T) or false (F)
Two shortcomings of using concentration ratios are: (1) ___________; and (2) __________.
Fill in the blank(s) with the appropriate word(s).