Answer the following questions true (T) or false (F)
1. A university must decide if it should stop offering foreign language classes. This decision involves answering the economic question of "how to produce."
2. In market economies, income distribution is always going to be completely equitable.
3. "An increase in the price of gasoline will increase the demand for hybrid vehicles." This statement is an example of a positive economic statement.
1. FALSE
2. FALSE
3. TRUE
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Which of the following would advocate increasing government spending on welfare programs during a recession?
a) Supply-side economists. b) Classical economists. c) Monetarists. d) Keynesians.
Please refer to the following diagram. 
A horizontal interpretation of the demand curve for a product
A. stipulates price as the independent variable in the price quantity relationship. B. indicates that a buyer can buy all she/he wants to buy at a given price. C. indicates that a seller can sell all he/she wants to sell at the given price. D. tells what prices would be required to sell various quantities of output.
Since World War II, the U.S. economy has met its goals of full employment, price stability, and economic growth every year.
Answer the following statement true (T) or false (F)
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower