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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Because the applications for "diversity immigration" into the U.S. far exceed the quota every year, the slots are filled through:
A. An annual lottery B. A first-come-first-served system C. A bidding system, allocation through prices D. Political connections
Suppose the marginal product of labor is MPN = 200 - 0.5N
where N is aggregate employment. The aggregate quantity of labor supplied is 100 + 4w, where w is the real wage. The government imposes a minimum wage of 60. What is the quantity of employment? A) 240 B) 260 C) 280 D) 300
The amount that producers receive for a good minus their costs of producing it equals
a. quantity supplied. b. supply price. c. deadweight loss. d. producer surplus.
Entry into a monopolistically competitive industry
A. is very difficult. B. is about the same as entering a monopoly industry. C. is relatively easy. D. can be easy or difficult, depending on the type of product.