A shortage in the bread market can cause the price of bread to rise
Indicate whether the statement is true or false
True
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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
An increase in the supply of capital, which is a substitute to labor, will lead to a decrease in the demand for labor
Indicate whether the statement is true or false
Which approach to calculating GDP is especially useful in clarifying the resale of existing goods?
A. The expenditure approach B. The income approach C. The value-added approach D. Any of these measurements will allow that kind of clarification equally well.
Figure 10-17
Suppose an economy is currently operating at output Y1 associated with AD1 and SRAS1, shown in . Initially, the output of this economy is
a.
above its potential, and the rate of unemployment is greater than the natural rate.
b.
below its potential, and the rate of unemployment is greater than the natural rate.
c.
above its potential, and the rate of unemployment is less than the natural rate.
d.
below its potential, and the rate of unemployment is less than the natural rate.