Points where the aggregate expenditure (AE) curve lie above the 45° line are points where aggregate planned expenditure is
A) greater than real GDP.
B) equal to real GDP.
C) less than real GDP.
D) the inverse of real GDP.
E) not related to real GDP.
A
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
A market with two firms can be an oligopoly if: a. one of the firms eventually wins a patent on the product sold in the market. b. the government makes them sell their output at the equilibrium price
c. both the firms spend a significant amount of money on product development. d. one of the firms is taken over by the other.
Which of the following is the best equation for calculating the growth rate in the standard of living?
Use the following graph for a monopolistically competitive firm to answer the next question. 
The long-run equilibrium price and output for this firm will be
A. A and C. B. A and D. C. B and D. D. B and C.