When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline
Answer: B
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When tax revenues ________ outlays is positive, then the government has a budget ________
A) plus; deficit B) minus; deficit C) minus; surplus D) plus; surplus E) divided by; surplus
People are not part of the labor force when they
A. Suffer from a temporary illness that keeps them away from their job. B. Go on vacation. C. Are old enough to work but choose not to work. D. None of the choices are correct.
A perfectly competitive firm breaks even at a price equal to its minimum average total cost
Indicate whether the statement is true or false
In years when teenagers become a greater percentage of the labor force,
A) the natural rate of unemployment falls. B) the natural rate of unemployment rises. C) the inflation rate rises. D) the inflation rate falls.