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

Economics

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Employment protection laws make it harder for employees to lose their jobs and as a result, these laws reduce structural unemployment

Indicate whether the statement is true or false

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Exchange rates are determined in

A) the money market. B) the foreign exchange market. C) the stock market. D) the capital market.

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Refer to Figure 34.3. The implied marginal tax rate is

A. 100 percent. B. 0 percent. C. Greater than 100 percent. D. 50 percent.

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Special interests are most likely to be effective at _____

a. the federal level b. the state level c. and the county level d. at the city level

Economics