The average cash income of nonpoor two-parent families with children is more than six times greater than for poor two-parent families

When the macroeconomic equilibrium is such that real GDP exceeds potential real GDP, the economy is suffering from ________, and the government policy to eliminate this gap will ________ real GDP and ________ the price level

A) an inflationary gap; increase; increase B) a recessionary gap; decrease; decrease C) an inflationary gap; increase; decrease D) a recessionary gap; increase; decrease E) an inflationary gap; decrease; decrease

The circular flow model demonstrates

A) the role of the government in overseeing the market system. B) the roles played by households and firms in the market system. C) how demand and supply for goods and services are brought into equilibrium. D) how shortages and surpluses are eliminated in a market.