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
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In the RBC model, an adverse supply shock causes the decrease in natural real GDP to be minimized when the labor supply curve is
A) downward sloping and extremely flat. B) upward-sloping and extremely flat. C) upward-sloping and extremely steep. D) vertical.
The Organization of Petroleum Exporting Countries (OPEC) is an example of a(n)
A) oil monopoly. B) cartel. C) competitive arrangement. D) prisoner's dilemma.
_________ occurs when people are so busy doing things they cannot plan or lead effectively
a. Task duration b. Task limitation c. Task saturation d. Task surrender
Which of the following groups has the highest poverty rate?
a. blacks b. Asians c. children (under age 18) d. female households, no spouse present