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...
The presence of a positive externality in a market leads to ________
A) an underproduction of the good B) an overproduction of the good C) a deadweight loss D) a fall in the consumer surplus
Joe consumes pizza and movies. He is currently spending his entire income and his marginal utility of pizza is 10 and his marginal utility of movies is 5
If the price of a pizza is $10 and the price of a movie is $5, then to maximize his utility Joe should A) increase consumption of pizza and decrease consumption of movies. B) increase consumption of movies and decrease consumption of pizza. C) not change his current bundle of movies and pizza. D) increase consumption of both goods.
How did the Fed peg interest rates during World War 2?
A) by setting a low federal funds rate B) by agreeing to purchase any bonds that were not purchased by private investors C) through extensive use of discount loans D) through nationalization of the banking system
One potential outcome of vote trading would be ______.
a. the disappearance of political parties b. the elimination of the influence of special interests c. special interests prevailing and harming the overall good d. equal representation for all people