Contractionary monetary policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) higher; higher B) higher; lower C) lower; lower D) lower; higher
C
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
According to the graph, what is the reduction in U.S. lumber consumption as a result of the tariff?
a. 700,000 board feet
b. 100,000 board feet
c. 200,000 board feet
d. 300,000 board feet
The saving and investment equation holds only when the federal budget is balanced
Indicate whether the statement is true or false
Which of the following would not describe two thirds of the for-profit businesses in the United States as measured by sheer number of firms?
a. small retail businesses b. small service operations c. part-time home-based businesses d. small farms e. multinational corporation