An increase in the price level and a reduction in output would result from
a. a fall in stock prices.
b. a decrease in the supply of an important resource.
c. an increase in government expenditures.
d. an increase in taxes.
b
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The main goal of the Clayton Act was to
A. make restraint of trade illegal. B. limit mergers and price-fixing contracts. C. limit competition among small firms. D. make deceptive practices illegal.
It is perfectly legitimate for the United States to pass laws requiring that all food products or cars sold in the United States meet certain safety standards approved by the United States government as long as they have some ___________ basis.
a. environmental b. scientific c. political d. subjective
A consequence of an inflationary gap is ____ as output begins to decrease and prices continue to increase
a. stagflation b. reflation c. disinflation d. perflation
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