When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline
Answer: C
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An exchange rate is the price of one currency in terms of a second currency
a. True b. False Indicate whether the statement is true or false
The sum of value added
A. Is one way to compute the GDP. B. Equals the sum of the value of intermediate goods. C. Measures the intangible quality of goods and services produced in the economy. D. Equals net domestic product.
Suppose the demand for a product is lnQxd = 12 ? 3 ln Px. Then product x is:
A. unitary elastic. B. elastic. C. inelastic. D. It cannot be determined without more information.
Natural pollutants
a. are those contaminants that are linked to human activity b. include such contaminants as lead and carbon monoxide c. are the same as anthropogenic pollutants d. are those arising from nonartificial processes in nature