In the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, Box 1 should be filled with 
A. RGDP for Real Gross Domestic Product.
B. PI for Price Index.
C. AS for Aggregate Supply.
D. AD for Aggregate Demand.
Answer: B
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A person who has not worked in six months and has given up looking for work is officially classified as
A. employed. B. unemployed. C. discouraged. D. in the labor force.
The expenditure approach measures GDP by adding the spending of households, businesses, government, and foreigners
a. True b. False Indicate whether the statement is true or false
At a price of $50 for a CD player, firms are willing to produce and sell 2200 CD players. At a price of $70 for a CD player, firms are willing to produce and sell 2600 CD players. What is the price elasticity of supply in this range? (Use arc elasticity.)
a. 2 b. .5 c. .05 d. 20 e. none of the above
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower