An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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The term "barter" is used to refer to
Emotions like guilt and sympathy:
A. are irrelevant to economic decision-making. B. can solve commitment problems, but generally reduce players' payoffs. C. can solve commitment problems. D. reduce the likelihood that a transaction will maximize total economic surplus.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
In a game of bargaining, the player who is willing to:
A. be cooperative has more bargaining power and so receives a worse payoff. B. hold out longer has more bargaining power and so receives a worse payoff. C. hold out longer has more bargaining power and so receives a better payoff. D. make the first move has more bargaining power and so receives a better payoff.