The long-run result of government intervention in responding to a recession is:
A. the same level of output at higher prices.
B. higher level of output at higher prices.
C. higher level of output at lower prices.
D. lower level of output at the same prices.
A. the same level of output at higher prices.
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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
Fiscal restraint is
A. Tax cuts or spending increases meant to reduce aggregate demand. B. Changes in taxes and spending intended to increase aggregate supply. C. Tax hikes and/or spending cuts intended to reduce aggregate demand. D. Not possible because Congress continues to spend too much money.
Public sector unions now
A. Represent a smaller percentage of workers than private sector unions. B. Represent over five times the percentage of workers in private sector unions. C. Are growing at a smaller rate than private sector unions. D. Are illegal in the United States.
Suppose the total benefit of watching 1 baseball game is 100, the total benefit of watching 2 games is 120, and the total benefit of watching 3 games is 125. In this case, the marginal benefit of watching the 3rd game is:
A. 375 B. 5 C. 41.67 D. 125