In economics, graphs serve two purposes: they offer a way to visually express ideas, and they provide a way of finding and interpreting patterns when analyzing economic data

A recessionary gap develops: a. when actual output exceeds potential output

b. when resource prices are "sticky" upward. c. only when the economy is in recession. d. only when GDP grows by more than 4 percent. e. only when unemployment exceeds its natural rate.

A balanced budget is present when:

a. the economy is at full employment. b. the actual level of aggregate spending equals the planned level of spending. c. public sector spending equals private sector spending. d. government revenues equal government expenditures.