When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline
Answer: B
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Refer to the figure below. If Cory chooses A, then Jess's best response is: 
A. to choose A. B. to choose the cell in which Jess's payoff is 10. C. non-existent. D. to choose B.
Refer to Figure 1A.2. If this consumer rents zero DVDs, how many movie tickets will she purchase?
A) 0 B) 5 C) 10 D) 15
Which of the following statements is true?
A) Network effects arise because of economies of scale. B) Economies of scale arise because of network effects. C) Economies of scale act as barriers to entry into a market. D) Network effects provide incentives to new sellers to enter the market.
Based on the table above which shows Chip's costs, if Chip shuts down in the short run, his total cost will be
A) $0. B) $1,000. C) $1,200. D) $4,000.