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

With the proposed TPP tariff changes on imported shoes, New Balance would be ________ by the change in prices on some of the imported shoes sold by other companies that compete with

New Balance's U.S.-produced shoes, and New Balance would be ________ because of the price it could now charge for the shoes it imports from TPP countries. A) hurt; hurt B) helped; helped C) hurt; helped D) helped; hurt

If the economy is not operating at full-employment real GDP, classical economists prescribe a government policy of nonintervention

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