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
You might also like to view...
In theory, the long-run supply curve for perfectly competitive market firms who are identical is:
A. perfectly elastic. B. perfectly inelastic. C. upward sloping. D. downward sloping.
Which of the following is the correct formula for computing GDP?
a. GDP = consumption + private investment + government spending + exports - imports b. GDP = consumption + public investment + government spending + exports - imports c. GDP = consumption + private investment + government spending - exports - imports d. GDP = consumption + private investment + government spending + transfers e. GDP = consumption + private investment + tax revenue + transfers
How do economists refer to the change in a firm’s revenue that results from the addition of another piece of equipment?
a. marginal resource cost b. marginal input benefit c. marginal product cost d. marginal revenue product
Since the formation of NAFTA, our trade deficit with Mexico has gone ___________ and our trade deficit with Canada has gone ____________.
A. up; up B. down; down C. up; down D. down; up