When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline
Answer: C
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The long-run average cost curve is the relationship between the highest attainable average total cost and output when both the plant size and labor are varied
Indicate whether the statement is true or false
For which of the following goods is the marginal benefit of search likely to be greatest?
a. a pair of shoes b. an automobile c. a jar of honey d. a loaf of bread e. a pair of jeans
Assume that the U.S. labor force consists of 185 million workers and that 17.5 million are officially unemployed. Calculate the unemployment rate
a. 11.4 percent b. 10.0 percent c. 9.5 percent d. 7.5 percent e. 10.8 percent
Which of the following is not an example of input growth that is a potential source of economic growth
a. immigration b. growth of the capital stock c. development of new technologies that reduce energy use. d. greater investment in workers' skills e. All of these are examples of input growth