Inflationary gaps lead to rising unemployment and rising inflation.
Answer the following statement true (T) or false (F)
True
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Use the following graph for the milk market to answer the question below. 
In this market, the equilibrium price is ________ and equilibrium quantity is ________
A. $1.50 per gallon; 28 million gallons. B. $28 per gallon; 150 million gallons. C. $1.00 per gallon; 35 million gallons. D. $1.50 per gallon; 30 million gallons.
If you sell your DVD player on eBay, you will be better informed about the quality of the product than any potential buyer. This is called
A) adverse selection. B) asymmetric information. C) moral hazard. D) opportunistic behavior.
Attempts by the government to reduce the rate of inflation often result in higher unemployment in the short run
a. True b. False Indicate whether the statement is true or false
The issue with centralized versus decentralized decision making is that
A. it is always easy to find out which is better, but not all may agree. B. centralization is always better because one person controls all information. C. decentralization is always better because many people can split the tasks. D. it is difficult to find out whether one is better than the other in the hierarchy.