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

Inflation can come from the demand side or from the supply side of the economy

a. True b. False Indicate whether the statement is true or false

Economic growth is difficult for poor countries because

A. governments must fund capital production and research out of tax revenues. B. resources must be taken away from consumer goods to pay for capital goods. C. those wealthy enough to invest in domestic industries may choose to invest abroad instead. D. All of the choices are true.