Consider the following economic agents:
a. the government
b. consumers
c. producers
Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy?
A) the government
B) producers
C) consumers
D) consumers and producers
E) the government, consumers, and producers
Answer: E
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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
Which of the following countries has the greatest percentage of people living in extreme poverty?
A. China. B. India. C. Bolivia. D. Congo.
Figure 10-6
In the short-run equilibrium depicted in , the economy's output is
a.
equal to potential GDP.
b.
less than potential GDP.
c.
greater than potential GDP.
d.
equal to the economy's full-employment output.
Of the following examples, expenditures on ______ will most likely remain stable when the GDP drops.
a. tables b. shirts c. figurines d. sports cars