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
You might also like to view...
Social costs of a good are equal to
A) external costs minus private costs. B) private costs minus external costs. C) private costs plus external costs. D) external costs divided by the private costs.
In economic terms, interest is the payment for
A) current command over resources. B) producers' goods. C) stocks. D) both consumer and capital goods.
Sticky nominal wages can result in
a. lower profits for firms when the price level is lower than expected. b. a decrease in real wages when the price level is lower than expected. c. a short-run aggregate-supply curve that is vertical. d. a long-run aggregate-supply curve that is upward-sloping.
Anna, a U.S. citizen, works only in Germany. Where is the value she adds to production in Germany included?
What will be an ideal response?