Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

Suppose a country's net exports equal -$21.3 billion. Which of the following will happen if the volume of exports increases by $1 billion, imports remaining unchanged?

A) The country's net exports will be equal to -$20.3 billion. B) The country's net exports will become positive. C) The country's net exports will be equal to -$22.3 billion. D) The country's net exports will be zero.

Suppose the population of Timmy Town is 1000 people and the working-age population is 800. If 200 of these people are unemployed, the unemployment rate in Timmy Town is

A) 1/4 × 100. B) 1/5 × 100. C) 1/8 × 100. D) 2 percent. E) There is not enough information provided to calculate the unemployment rate.