A decrease in autonomous investment ________
A) increases equilibrium output at any interest rate
B) causes a movement down along the IS curve
C) shifts the IS curve to the left
D) all of the above
E) none of the above
C
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When the Fed ________ securities in an open market operation, banks' reserves ________, and therefore lending ________
A) sells; increase; increases B) buys; increase; increases C) sells; decrease; increases D) buys; decrease; decreases E) buys; do not change; does not change
Game theory is the study of ________
A) policy analysis B) strategic interactions C) program evaluation D) irrational decision making
When per capita real GDP is increasing, real output is growing:
a. more rapidly than prices. b. more rapidly than population. c. less rapidly than prices. d. less rapidly than population.
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A