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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If a currency such as the US$ is traded in a competitive market, a(n) ________ in demand for the US$ ________ the price of the US$ in terms of another currency such as the Japanese Yen (¥)
A) increase; lowers B) increase; raises C) decrease; raises D) change; lowers
Growth should
A) be the only strategy. B) be a possible strategy. C) never be a strategy. D) be a strategy only if it minimizes ATC.
The fact that individuals whose credit worthiness is less than it appears to be are those who are most willing to borrow funds at any given interest rate is an example of
A) moral bonuses. B) diverse origins. C) symmetric information. D) adverse selection.
Economic profits are:
A. total revenue minus total opportunity cost. B. marginal revenue minus marginal cost. C. total revenue minus total cost. D. total profits of the economy as a whole.