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
You might also like to view...
All cross elasticities are positive
Indicate whether the statement is true or false
In which of the following countries are citizens required to vote?
a. Greece b. Canada c. United States d. France
Figure 4-22
Refer to . The equilibrium price in the market before the tax is imposed is
a.
$1.00.
b.
$3.50.
c.
$5.00.
d.
$6.00.
Answer the following statement true (T) or false (F)
1) The government's ability to force people to do things can increase economic efficiency. 2) Government's ability to enforce laws and contracts increases private-sector economic risks. 3) The invisible hand guides government's economic activity just as it does with private economic activity. 4) Because of the force of law and bureaucratic structure, government accountability is less of a problem than in the private sector.