An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
In growth theory, the change in a country's standard of living is measured by the change in
A) employment. B) the nation's capital stock. C) wages per person. D) real GDP. E) real GDP per person.
Answer the following statements true (T) or false (F)
1. All people in the non institutional population are counted as members of the labor force. 2. The labor force participation rate describes the civilian labor force as a percentage of the civilian noninstitutional population. 3. The total U.S. labor force excludes members of the armed services stationed outside the United States. 4. All college students are excluded from the U.S. labor force. 5. The increase in U.S. population during the past few years has required an increase in the number of agriculture workers to meet food requirements.
The increase in total output that results from a unit increase in the employment of a variable input is equal to the input's
a. total product. b. marginal product. c. average product. d. marginal cost.