In the above figure, if the relevant aggregate demand curve is AD2, what type of gap exists and how large is it?
A) inflationary gap of $1 trillion B) recessionary gap of $500 billion
C) inflationary gap of $500 billion D) recessionary gap of $1 trillion
B
Economics
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Scarcity forces people to
A) cheat and steal. B) consume as much as they can as quickly as they can. C) choose among available alternatives. D) live at a low standard of living. E) be unwilling to help others.
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Export subsidies are:
A. maximum limits on the quantity or total value of specific products imported to a nation. B. excise taxes or duties placed on imported products. C. licensing requirements, unreasonable quality standards, and the like designed to impede imports. D. government payments to domestic producers to enable them to charge lower prices and sell more goods in world markets.
Economics