If the SRAS curve intersects the AD curve to the right of Natural Real GDP, the economy is
A) in a recessionary gap.
B) in either a recessionary gap or an inflationary gap, but we need more information to determine which one.
C) in an inflationary gap.
D) at full-employment Real GDP.
C
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A project whose acceptance eliminates another project from consideration is called
A) independent. B) mutually exclusive. C) replacement. D) complementary.
Ignoring the differences across states, explain the benefit provided to the typical worker in the United States from unemployment insurance
The Federal Reserve System is an:
Agency ran by popularly-elected officials Agency that is under the direction of the President Agency that is controlled by Congress Independent agency of government
Suppose you negotiate a one-year loan with a principal of $1000 and the nominal interest rate is currently 7%. You expect the inflation rate to be 3% over the next year. When you repay the principal plus interest at the end of the year, the actual inflation rate is 2.5%. Compute the ex ante and ex post real interest rate. Who benefits from this unexpected decrease in inflation? Who loses?
What will be an ideal response?