If the economy is in equilibrium at $400 billion of GDP and the full-employment GDP is $500 billion:
A. real and nominal GDP will both increase.
B. GDP will remain at $400 billion unless aggregate expenditures change.
C. real GDP will increase, but nominal GDP will decrease.
D. the price level will increase.
B. GDP will remain at $400 billion unless aggregate expenditures change.
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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
Total reserves are
A) required reserves plus vault cash. B) required reserves plus excess reserves. C) required reserves. D) excess reserves.
Which of the following is not capital?
A) a computer in the office of an accountant B) a migrant worker in the fields of California C) a wrench in an auto-repair shop D) a new machine used for producing microchips
The farther an indifference curve is from the origin, the more total utility it yields.
Answer the following statement true (T) or false (F)