The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B
B. recessionary; C
C. recessionary; A
D. expansionary; A
Answer: C
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People tend to eat more at all you can eat buffets than they would at any other restaurants. This is so because the cost of consuming an additional item at an all you can eat buffet is
a. negative b. zero c. positive d. None of the above
A non-policy reason for the reduction in the natural rate of unemployment is the
a. expansionary nature of monetary policy. b. aging of the U.S. labor force. c. decline in interest rates. d. growing federal budget surplus.
Which of the following areas of study typifies microeconomics as opposed to macroeconomics?
a. the impact of minimum-wage laws on employment in the fast food industry b. the effect of changes in household saving rates on the growth rate of national income c. the impact of faster money growth on the rate of inflation d. a comparison of alternative tax policies and their respective impacts on the rate of the nation's economic growth
Which is the most accurate statement?
A. Collective bargaining negotiations usually end as a strike. B. Most strikes cause devastating economic disruption. C. The firm with the least ability to withstand a strike would be a service firm.