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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One reason why firms would choose a salary system rather than a commission compensation system is that their employees might become less concerned about the quality of their work
Indicate whether the statement is true or false
Given the information in the table above, if the world equilibrium price of widgets were 4 cloth, then
A) both countries could benefit from trade with each other. B) neither country could benefit from trade with each other. C) each country will want to export the good in which it enjoys comparative advantage. D) neither country will want to export the good in which it enjoys comparative advantage. E) both countries will want to specialize in cloth.
Aggregate expenditure equals
What will be an ideal response?
Since 1975, the distribution of household income in the United States has:
A. Moved toward greater inequality B. Moved toward greater equality C. Remained about the same D. Fluctuated considerably