Refer to Table 9.2. (Data are expressed in billions of dollars.)Table 9.2Full Employment Income (Output)Consumers Desire to SpendInvestors Desire to SpendTotal Private SpendingTotal Saving$500$300$250$________$________600375250$________$________700450250$________$________800525250$________$________If the full-employment level of income (YF) in Table 9.2 is $700 billion,

A. There is an inflationary gap of $450 billion.
B. There is an inflationary gap of $700 billion.
C. The economy is in equilibrium.
D. There is a recessionary gap of $250 billion.

Answer: C

Economics

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Suppose Dan is willing to pay a maximum of $3,000 for a piano, but finds one he can buy for $2,500. Dan's consumer surplus from this piano is

A) $5,500. B) $3,000. C) $2,500. D) $500. E) zero because he buys the piano.

Economics

Relative to a perfectly competitive market, a monopoly results in

A) a gain in producer surplus equal to the gain in consumer surplus. B) a gain in producer surplus equal to the loss in consumer surplus. C) greater economic efficiency. D) a gain in producer surplus less than the loss in consumer surplus.

Economics