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.

A tariff will benefit

A) domestic producers by maintaining a higher than free-trade price. B) foreign producers by allowing them to sell at a higher price in markets with tariffs. C) consumers who are able to better afford domestically produced goods. D) All of the above answers are correct.

The "no shirking constraint" (NSC) curve never crosses the supply of labor curve, so

A) the market never reaches equilibrium. B) there is always full employment in equilibrium. C) there is always some unemployment in equilibrium. D) the efficiency wage is always lower than the market-clearing wage. E) the gap between the NSC curve and the supply of labor curve equals the difference between the efficiency wage and the market-clearing wage.