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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Programs like Medicaid in the United States provide low-income households with medical care, because of the attitude of unfairness associated with the allocation of health care
a. True b. False Indicate whether the statement is true or false
The price elasticity of supply
a. will be positive when supply is elastic and negative when it is inelastic. b. will be negative when supply is elastic and positive when it is inelastic. c. will always be positive. d. will be positive when demand for the good is inelastic. e. will be positive when demand for the good is elastic.
How much is the marginal propensity to consume when disposable income rises from 0 to $1 trillion?
A. 0
B. .25
C. .5
D. .75
Purposeful behavior means that:
A. people are selfish in their decision making. B. people weigh costs and benefits to make decisions. C. people are immune from emotions affecting their decisions. D. decision makers do not make mistakes when weighing costs and benefits.