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 difference between the exports and imports of goods in a country is referred to as the
A) balance of payments. B) balance of trade. C) balance of power. D) exchange rate.
Which of the following best describes social benefits?
a. The external benefits to other members of society, ignoring the private benefits to market participants. b. The sum of external benefits and private benefits. c. External benefits minus benefits. d. Private benefits minus external benefits.
Currency devaluations hurt
a. Consumers but help suppliers b. Suppliers c. Suppliers but help consumers d. None of the above
The most important item in the public assistance (welfare) package is
a. Aid to Families with Dependent Children b. Medicaid c. Medicare d. food stamps e. housing subsidies