A market equilibrium occurs
A) only with government regulation.
B) only because of the profit motive of firms.
C) only because of the complacency of consumers.
D) through the interaction of self-interested consumers and producers.
D
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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 the above figure, if the relevant aggregate demand curve is AD2, what are the short-run equilibrium price level and real GDP?
A) 120 and $11.5 trillion B) 120 and $12 trillion C) 130 and $11.5 trillion D) 130 and $12 trillion
Explain why many economists are skeptical about whether Ricardian equivalence describes the behavior of households in the economy
What will be an ideal response?
The study of economics is primarily concerned with:
A. keeping private businesses from losing money B. demonstrating that capitalistic economies are superior to socialistic economies. C. choices that are made in seeking the best use of resources. D. determining the most equitable distribution of society's output.