If aggregate expenditures are lower than real GDP:
A. actual real output is less than equilibrium real output.
B. aggregate output increases.
C. employment increases.
D. there will be unplanned increases in inventories.
D. there will be unplanned increases in inventories.
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Which of the following is likely to happen to the demand curve for reserves if the federal funds rate increases?
A) The demand curve for reserves will shift to the right. B) The demand curve for reserves will shift to the left. C) There will be an upward movement along the demand curve for reserves. D) There will be a downward movement along the demand curve for reserves.
According to the real business cycle model, a rightward shift in the long-run aggregate supply schedule would be caused by ________
A) a negative supply shock B) an increase in aggregate demand C) a positive supply shock D) a decrease in aggregate demand
If potential output equals 8,000 and short-run equilibrium output equals 8,500, there is a(n) ________ gap and the Federal Reserve must ________ real interest rates in order to close the gap.
A. expansionary; raise B. recessionary; raise C. recessionary; not change D. recessionary; reduce
The last year that our current account deficit was close to 0 was __________.
Fill in the blank(s) with the appropriate word(s).