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


Answer: C

Economics

You might also like to view...

How wages are determined is best described by

A. political and social forces (such as unions) only. B. economic factors only. C. government regulation only. D. economic factors, with strong influences by political and social forces (such as unions).

Economics

If your income is $40,000 and you pay taxes of $4,650, what is your average tax rate? Show your work

What will be an ideal response?

Economics

Currency appreciation will decrease net exports

Indicate whether the statement is true or false

Economics

In terms of location decisions, firms evaluate the extent to which the labor force is unionized

Indicate whether the statement is true or false

Economics