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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The largest government-run health care system in the world, with 1.7 million employees, is the National Health Service (NHS) in the United Kingdom. The NHS receives its funding primarily from
A) tariffs. B) the World Health Organization. C) private businesses. D) income taxes.
The expenses you encounter when you buy in one market and sell in a distant market are known as
A) transactions costs. B) sunk costs. C) fixed costs. D) production costs.
If a firm can sell 3,000 units of product A at $10 per unit and 5,000 at $8, then
A) the price elasticity of demand is 0.44. B) A is a complementary good. C) the price elasticity of demand is D) A is an inferior good.
Between 1880 and 1896 the average level of prices in the U.S. economy
a. fell 23 percent. b. fell 4 percent. c. rose 23 percent. d. rose 50 percent.