Author Question: In the above figure, point B depicts A) an inflationary gap with real GDP in excess of potential ... (Read 48 times)

ahriuashd · **on:** Jun 29, 2018

In the above figure, point B depicts

A) an inflationary gap with real GDP in excess of potential GDP.
B) an inflationary gap with real GDP less than potential GDP.
C) a recessionary gap with real GDP in excess of potential GDP.
D) a recessionary gap with real GDP less than potential GDP.

Question 2

In the political marketplace, firms do all of the following EXCEPT

A) vote.
B) pay taxes.
C) evaluate policy proposals of politicians.
D) benefit from public goods and services.