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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In the loanable funds market, as the interest rate rises the ________ and the ________
A) quantity of loanable funds supplied increases; quantity of loanable funds demanded decreases B) quantity of loanable funds supplied decreases; quantity of loanable funds demanded increases C) supply of loanable funds increases; demand for loanable funds decreases D) supply of loanable funds decreases; demand for loanable funds increases
The part of a business cycle that follows a peak is the:
a. trough phase of the cycle. b. break-even point of the cycle. c. peak period of the cycle. d. recessionary phase of the cycle. e. expansionary phase of the cycle.
Without a belief that the market has failed, which of the following will result in deadweight loss?
A. A price below or above equilibrium B. A price above equilibrium C. A price at equilibrium D. A price below equilibrium
How can population changes affect demand for certain goods?
(A) People at different stages of their lives have different demands. (B) Different levels of demand will cause different prices. (C) More people demanding goods will cause prices to rise. (D) Demand will exceed supply under some population conditions.