Acquiring information on a bank's activities in order to determine a bank's risk is difficult for depositors and is another argument for government

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

A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A

Suppose that recent studies conclude that high-fiber diets do not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:

A. demand for high-fiber foods will decrease. B. quantity demanded of high-fiber foods will fall. C. price of high-fiber foods will rise. D. supply of high-fiber foods will increase.