If the economy is above full employment, there is ________ gap, and as the economy adjusts toward full employment, the price level ________
A) a recessionary; rises
B) an inflationary; falls
C) a recessionary; falls
D) an inflationary; does not change
E) an inflationary; rises
E
Economics
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Which of the following purchases would be counted as a final good in the GDP calculation?
a. A family's purchase of a used car. b. A speculator's purchase of 100 shares of Apple Computer stock. c. A deli's purchase of bread for making its sandwiches. d. A business's purchase of new office equipment.
Economics
Which of the following is a policy option to eliminate an AD shortfall?
A. Reduce taxes. B. Reduce transfer payments. C. Decrease government purchases. D. All of the choices are correct.
Economics