Based on the figure below. An economy is currently in long-run equilibrium at point B, at an inflation rate of ?', which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ________ creating _____gap. 
A. A; a recessionary
B. D; a recessionary
C. D; an expansionary
D. A; an expansionary
Answer: A
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A disadvantage of the barter system is that
A) no trade occurs. B) people must produce all their own food, clothing, and shelter. C) the opportunity to specialize is greatly reduced. D) gold is the only unit of account.
There are several competing models of the business cycle because
A) none currently captures all facets of the business cycle. B) they are all rooted in different philosophical traditions. C) different shocks need different models. D) they depend on the type of policy that is adopted.
If interest rates in the United States are higher than interest rates in Europe, what is most likely to happen?
a. Supply of dollars will increase, causing appreciation of the dollar. b. Supply of euros will increase, causing appreciation of the euro. c. Demand for dollars will increase causing appreciation of the dollar. d. Demand for dollars will decrease, causing depreciation of the dollar.
Which of the following is true?
A. ATC = AVC - AFC B. TVC/Q = TC/Q + TFC/Q C. ?TC/?Q = ?AVC/?Q D. ?TC/?Q = MC