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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Product differentiation helps determine the slope of the demand curve facing a firm in monopolistic competition
a. True b. False
If goods are produced abroad but consumed domestically,
a. those goods are termed imports b. international trade has not occurred c. the domestic economy is economically inefficient d. there are no gains from specialization e. those goods are termed exports
When the stock market is rising rapidly, what tends to happen to bond prices and interest rates on bonds?
a) Bond prices rise and interest rates on bonds fall. b) Bond prices rise and interest rates on bonds rise as well. c) Bond prices fall and interest rates on bonds fall as well. d) Bond prices fall and interest rates on bonds rise.
Refer to the information provided in Figure 23.9 below to answer the question(s) that follow.
Figure 23.9Refer to Figure 23.9. Equilibrium output equals
A. 100. B. 150. C. 200. D. 300.