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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Any allocation resulting from a mutually beneficial trade is efficient.
Answer the following statement true (T) or false (F)
In 1964 civil rights legislation was passed
a. that made it illegal for women to make less than the minimum wage. b. that created the No Woman Left Behind Commission. c. prohibiting employers from discriminating based on race and gender. d. requiring fields traditionally dominated by male workers to hire more female candidates.
Suppose that financial market participants expect that the central bank will pursue a monetary expansion in the future. Also assume that the yield curve is initially upward sloping. Given this information, we would expect which of the following to occur?
A) The yield curve will become steeper. B) i2t will increase. C) i2t will decrease. D) The yield curve will become downward sloping.
The government serves as an actor in the economy when it
A. alters anti-trust laws B. increases defense spending C. reduces the minimum wage D. improves health and safety standards for certain industries