The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A
B. recessionary; C
C. recessionary; B
D. expansionary; A
Answer: D
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The main reason economists are concerned about the problem of idle or unemployed resources is that: a. high rates of crime are related to high rates of unemployment
b. high rates of inflation are caused by idle land, labor, and capital resources. c. government benefits paid to unemployed workers put stress on the federal budget. d. unemployed resources mean less production and a lower standard of living for the nation.
Most unemployed low-skilled workers are ______.
a. between QD and QS
b. to the left of QD
c. to the right of QS
d. between 0 and QS
The MPS is about
A. .9.
B. .85.
C. .8.
D. .75.
The primary objective of economics is
A. to study how people make choices with limited resources. B. to study why some people are never happy with the resources they have. C. to learn how to create more resources. D. to learn how to make the most profits with a given amount of resources.