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

Economics

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Answer the following statement true (T) or false (F)

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Suppose a consumer is currently spending all of her available income on two goods: music CDs and DVDs. If the price of a CD is $9, the price of a DVD is $18, and she is currently consuming 10 CDs and 5 DVDs, what is the consumer's income?

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What will be an ideal response?

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