If the Fed sells U.S. government securities in the open market, gross domestic product _____
Fill in the blank(s) with the appropriate word(s).
decreases because the resulting increase in the interest rate leads to a decrease in investment.
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You believe that the total amount of goods produced in the United States has generally increased over the years. In a time-series graph illustrating the total amount produced, you expect to find
A) an upward trend. B) no relationship between time and the amount of goods produced. C) an inverse relationship between time and the amount of goods produced. D) a linear relationship.
The focal point of collective bargaining negotiations is generally ________________.
Fill in the blank(s) with the appropriate word(s).
Referring to the Production Possibilities Frontiers in Figure 1.10 A, B, C, and D, which depicts specialized growth in soda when there is constant opportunity cost.
Figure 1.10
A. Fig. A B. Fig. B C. Fig. C D. Fig. D
In the short run in the Keynesian model, a sharp decline in oil prices would leave the economy with a ________ level of output and a ________ real interest rate.
A. higher; lower B. lower; higher C. lower; lower D. higher; higher