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...
According to OLI theory, a firm might be unwilling to license its production to a foreign firm for fear that its technology may be stolen or its brand name harmed, which leads the firm to internalize control over its asset and set up its own foreign
subsidiary. Indicate whether the statement is true or false
Which of the following is most likely to shift the potential output of an economy to the right?
a. A decline in the length of the average workweek b. An increase in the supply of educated and skilled workers c. A drought d. An increase in aggregate demand e. An increase in the minimum wage received by workers
The difference between marginal benefits and marginal costs is the:
A. opportunity cost. B. profits. C. accounting cost. D. marginal net benefits.
An early application of anti-trust law, to force the breakup of one firm's vertically integrated control over every aspect of the production, processing, and distribution of an essential product, occurred in the
A. AT&T Case. B. Microsoft case. C. Napster case. D. Standard Oil case.