Which answer ranks the elasticities of supply from highest to lowest?
a. market-day, short-run, long-run
b. short-run, long-run, market-day
c. long-run, short-run, market-day
d. short-run, market-day, long-run
e. long-run, market-day, short-run
C
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Suppose the economy of Catalania is experiencing a recession and policy makers decide to implement an expansionary monetary policy. After the implementation of the policy, there is a considerable time gap before the effect of the policy on the major economic variables is noticed. This is an example of: a. the neutrality of money. b. an inflationary gap
c. an administrative lag. d. an operational lag.
The diagram below shows the general equilibrium model for a small economy. For this economy, the economically efficient allocation of resources occurs at point 
A. B. B. C. C. D. D. A.
The long-run average cost curve is typically:
A. upward-sloping at first but then downward-sloping. B. downward-sloping at first but then upward-sloping. C. always downward-sloping. D. always upward-sloping.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A