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...
The Condorcet paradox
a. proved that the Arrow impossibility theorem is wrong. b. was proved wrong by the Arrow impossibility theorem. c. serves as an example of the Arrow impossibility theorem. d. pertains to voting systems, whereas Arrow's Impossibility Theorem does not.
In 2009 Congress passed legislation providing states with funds to build roads and bridges. It also instituted tax cuts. Which of these shifts aggregate demand right?
a. only the increased funding for states b. only the tax cuts c. both the increased funding for states and the tax cuts d. neither the increased funding for states nor the tax cuts
The single largest source of smog is:
A. automobiles. B. power plants. C. industrial manufacturing. D. fireplaces.
Explain why a lowering of interest rates should raise stock prices.
What will be an ideal response?