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

It is likely that a constitutional amendment that required the government always to run a balanced budget would

a. contribute to a more stable level of output. b. mitigate the crowding-out effect. c. eliminate the economy's automatic stabilizers. d. All of the above are correct.

Concentration ratios:

A. may overstate the degree of competition because they ignore imported products. B. may overstate the degree of competition because interindustry competition is ignored. C. may understate the degree of competition because they ignore imported products. D. provide detailed insights as to the price and output behavior of firms that comprise the various industries.