An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.

Full employment is defined by most economists as the minimization of

a. cyclical unemployment. b. frictional unemployment. c. seasonal unemployment. d. structural unemployment.

When looking at this graph for the welfare effects of a subsidy, a 50 percent decrease in the size of area F would mean ______.

a. consumer surplus increased
b. deadweight loss increased
c. quantity produced decreased
d. overall efficiency decreased