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
Answer: C
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What is the optimal level of provision of a public good?
What will be an ideal response?
The goal of Medicare is to
A) help the poor and indigent pay their hospital bills. B) prevent poverty in urban cities. C) subsidize medical expenses for the elderly. D) subsidize costs incurred by doctors.
A fixed exchange rate can be an equilibrium rate even if there is a permanent shift in the foreign exchange market supply and demand curves
a. True b. False Indicate whether the statement is true or false
If consumption spending increases by $10 million with no changes in net taxes, then:
A. private saving decreases. B. public saving increases. C. private saving increases. D. public saving decreases.