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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In monopolistic competition, each firm's marginal revenue curve has a ________ and its demand curve has a ________
A) slope equal to zero; slope equal to zero B) slope equal to zero; negative slope C) negative slope; a slope equal to zero D) negative slope; negative slope
A decline in the output gap causes the demand for real balances
A) to rise and the interest rate to fall. B) to fall and the interest rate to rise. C) and the interest rate to fall. D) and the interest rate to rise.
Which of the following is not an example of an infrastructure?
a. a transportation system b. a communications system c. a values system d. an educational system e. an energy system
Who observed that "in this world nothing is certain but death and taxes"?
a. Mark Twain
b. P.T. Barnum
c. Ben Franklin
d. Richard Nixon