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

Which of the following is true of economic expansions?

A) Economic expansions are defined as the period between recessions. B) Consumption increases but investment falls during periods of economic expansion. C) Output grows during periods of economic expansion, but the unemployment rate is also high. D) Governments can correctly predict the length of periods of economic expansion.

Which of the following suggests that people have no control over the number of hours they work?

a. Most workdays last from 8 a.m. to 5 p.m. b. People make use of the opportunity for overtime. c. People make use of the opportunity to moonlight. d. People make use of early retirement options. e. Many workers hold more than one job.