Refer to the above figure. If the current level of real GDP is $13 trillion, then the economy is experiencing
A. a fiscal deficit gap.
B. a deflationary gap.
C. an inflationary gap.
D. a recessionary gap.
Answer: C
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The inflow and outflow of foreign capital does not necessarily refer to a debt that governments owe to other governments.
Select whether the statement is true or false. A. True B. False
Since the wide spread acceptance of the Keynesian view during the 1960s,
What will be an ideal response?
Suppose it takes Paul 3 hours to bake a cake and 2 hours to mow the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?
A. Paul has the absolute advantage in mowing the lawn. B. Paul has the absolute advantage in baking cakes. C. Paul has the comparative advantage in mowing the lawn. D. Paul has the comparative advantage in baking cakes.
Monopolistic competition leads to ___________ prices, but ___________ product variety.
Fill in the blank(s) with the appropriate word(s).