If aggregate expenditure in an economy equals 2,000 + 0.8Y and full employment real GDP equals 11,000, then this economy has
A. no output gap.
B. no autonomous expenditure.
C. a recessionary gap.
D. an expansionary gap.
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
What does the U.S. business cycle experience suggest about periods of war?
A) the economy tends to boom during the period of war B) after the war is over, the economy typically experiences a downturn C) they are associated with good economic times D) all of the above E) none of the above
Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. Free-agent baseball pitchers who switch teams spend a relatively long time on the disabled list compared to those who do not switch teams.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 1.5 below to answer the question(s) that follow.
Figure 1.5Refer to Figure 1.5. Which of the Panels shows a curve or line that has a slope that is positive and decreasing?
A. A B. B C. C D. D