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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When people donate money to a charity, they behave
A) rationally if the act gives them satisfaction. B) irrationally because the act does not benefit anyone. C) in an unpredictable manner because the act involves no incentive. D) in a way that only makes themselves worse off.
Which of the following are not important areas of remaining scientific uncertainty regarding global climate change?
A) Whether or not greenhouse gases trap heat in the atmosphere. B) Whether or not the planet has warmed on average. C) Whether or not agriculture in the United States will be adversely affected by climate change. D) Whether or not concentrations of carbon dioxide have increased in the atmosphere.
Governments supervise banks mainly to do each of the following, except:
A. be sure the banks are following the regulations set out by banking laws. B. eliminate all risk faced by investors. C. reduce the moral hazard risk. D. reduce the potential cost to taxpayers of bank failures.
Refer to the information provided in Table 24.1 below to answer the question(s) that follow.Table 24.1
Refer to Table 24.1. At an output level of $2,000 billion, the level of aggregate expenditure is
A. $1,500 billion. B. $1,800 billion. C. $1,900 billion. D. $2,000 billion.