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

Suppose initially there is no customs union and that the $100 tariff is imposed by the United States. Now, Mexico invests in productive technology and it shifts the Mexican supply curve to SMex. The United States now forms a customs union with Mexico. This will result in a price of _______ and imports of _______.

a. $250; 500 b. $250; 400 c. $150; 600 d. $150; 500

If income is unequally distributed in an economy, increases in GDP may not raise well-being in an economy

Indicate whether the statement is true or false