Automatic stabilizers are provisions in the law which create automatic ________ in government spending or ________ in taxes when real output declines.
A. decreases; decreases
B. increases; increases
C. increases; decreases
D. no change; no change
Answer: C
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Based on this figure, if the official value of krone is fixed at $0.09 per krone, then the Norwegian krone is ________ and the international reserves of Norway will ________ krone per period. 
A. overvalued; decrease by 5,500 B. undervalued; increase by 2,000 C. undervalued; increase by 5,500 D. overvalued; decrease by 2,000
What is an efficiency wage and what effect does it have in the labor market?
What will be an ideal response?
"Natural" real GDP is defined as the total output
A) at business cycle peaks. B) at business cycle troughs. C) that causes an inflation rate of zero. D) that causes the inflation rate to remain constant. E) produced when all of our resources are being used to their maximum capacity.
The underemployed are those people who are
A. not looking for work actively enough to be considered unemployed. B. unemployed due to the ups and downs of the business cycle. C. working at a job below their skill level while looking for a better job. D. working full-time but want to work only part-time.