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
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If interest rates rise, what will happen to the nation's exchange rate?
What will be an ideal response?
For profit-maximizing monopolies, explain why the boundaries on the Lerner Index are 0 and 1
What will be an ideal response?
A natural correction to employer discrimination in market economies is the
a. threat of judicial review. b. profit motive. c. political process. d. union movement.
Exhibit 15-7 Foreign exchange market for U.S. dollars and British pounds
Exhibit 15-7 shows a situation in which:
A. both the dollar and the pound have depreciated. B. both the dollar and the pound have appreciated. C. the dollar has depreciated and the pound has appreciated. D. the dollar has appreciated and the pound has depreciated.