The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.  

At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's net investment for the year totaled

A) 1 machine. B) 2 machines. C) 3 machines. D) 6 machines.

The above figure shows the reaction functions for two pizza shops in a small isolated town. The Stackelberg leader will produce

A) 25 pizzas. B) 50 pizzas. C) 66.7 pizzas. D) 100 pizzas.