When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

A. decline; lower; expand
B. increase; raise; decline
C. decline; lower; decline
D. decline; raise; decline


Answer: B

Economics

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Fill in the blank(s) with the appropriate word(s).

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 Figure 18.2Refer to Figure 18.2. In autarky, the maximum amount of fishing poles that Macadamia can produce is:

A. 40. B. 100. C. 120. D. 160.

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A short-run change in ________ is referred to as a business cycle

A) the currency exchange rate B) the expenditure incurred by the government C) the aggregate price level D) the growth rate of output

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Political decisions will be _____ only if the decision was approved by _____

a. Pareto improvements; a unanimous vote b. in the public interest; a majority vote c. Pareto improvements; a majority vote d. undertaken; a unanimous vote

Economics