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
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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
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
Given the aggregate demand curve, a beneficial supply shock will _____
Fill in the blank(s) with the appropriate word(s).
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.