Does not increase real GDP
What will be an ideal response?
- decrease in government spending
- households have increasingly pessimistic expectations about future income
- decrease in the inflation rate in other countries, relative to the inflation in the US
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
If Second National Bank has more rate-sensitive assets than rate-sensitive liabilities, it can reduce interest-rate risk with a swap that requires Second National to
A) pay fixed rate while receiving floating rate. B) receive fixed rate while paying floating rate. C) both receive and pay fixed rate. D) both receive and pay floating rate.
Which would be one of the factors that increase aggregate demand?
a. An increase in the productivity of labor b. An increase in personal income tax rates c. An increase in consumer wealth d. An increase in real interest rates
One argument offered by economists for having a Social Security system is that if there were no Social Security, workers might
A. overestimate the value of retirement. B. save too much. C. work too long. D. not fully comprehend how hard it might be to continue working into their 70s.