The more the short-run output exceeds an economy's potential, _____
a. the smaller the expansionary gap
b. the greater the upward pressure on the price level
c. the larger the recessionary gap
d. the greater the downward pressure on the price level
e. the lesser the demand for resources
b
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For much of 2001 and 2002, McDonalds faced a(n):
A) decrease in demand. B) increase in demand. C) increase in profits. D) none of the above.
If manufacturer's new orders received for consumer goods are starting to fall, real GDP is most likely
A) beginning to rise. B) bottoming out. C) getting ready to decrease. D) already decreasing.
Over _______% of all banks are members of the FDIC.
Fill in the blank(s) with the appropriate word(s).
Stagflation occurs primarily during periods of rapid economic growth.
Answer the following statement true (T) or false (F)