When the macroeconomic equilibrium is such that real GDP exceeds potential real GDP, the economy is suffering from ________, and the government policy to eliminate this gap will ________ real GDP and ________ the price level
A) an inflationary gap; increase; increase
B) a recessionary gap; decrease; decrease
C) an inflationary gap; increase; decrease
D) a recessionary gap; increase; decrease
E) an inflationary gap; decrease; decrease
E
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A bond is a(n):
A. regular payment made to owners of a firm. B. legal promise to repay a debt. C. agreement issued by a financial intermediary linking savers and investors. D. claim to partial ownership of a firm.
In a small country, using prices of 2012, GDP in 2012 was $100 and GDP in 2013 was $110. Using prices of 2013, GDP in 2012 was $200 and GDP in 2013 was $210
The country's BEA will calculate ________ percent as the growth in real GDP between those years. A) 7.5 B) 15 C) 10 D) 5 E) None of the above answers is correct.
If a recession were to reduce the demand for loans, ceteris paribus,
A) the interest rate will increase. B) the interest rate will not change. C) the interest rate will decrease. D) the number of loans will increase.
Development assistance is designed to encourage a developing country to
a. increase consumer goods today. b. restrict the inflow of foreign direct investment. c. invest in its capital stock. d. reduce labor productivity.