If the public has correct rational expectations and the Fed reduces both reserve requirements and the discount rate, it would be expected to result in:
a. a higher level of real output and a lower price level.
b. a lower price level but no change in real output
c. a higher price level and a reduced level of real output.
d. a higher price level but no change in real output.
d
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Regulation of industry is usually carried out by special government agencies that administer and interpret the law.
Answer the following statement true (T) or false (F)
In the above figure, along which range would the demand for this good be most elastic?
A) between point a and point b B) between point c and point d C) between point d and point e D) at point e
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
If real GDP for 2009 is $6400 billion and nominal GDP for 2010 is $6720 billion (in 2010 dollars), then the growth rate of real GDP is
A) 0%. B) 0.5%. C) 5%. D) unknown based on the given information.