Which equation is a plausible aggregate demand curve?
A) ? = 2 + 0.3Y
B) Y = 50 - 1.25?
C) Y = 250 - 80r
D) ? = 5 - 0.4 (U – 6 )
E) none of the above
B
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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
In order to pay for services such as health care, education, and highways, governments
A) collect taxes B) sell tools and machinery to the business sector C) rely fully on donations from the population
The SAS curve and the LAS curve
A) intersect at potential GDP. B) are parallel at potential GDP. C) are perpendicular to one another at potential GDP. D) None of the above answers is correct.
Which of the following is NOT an important source of revenue for the federal government?
A) individual income taxes B) property taxes C) social insurance taxes and contributions D) corporate income taxes