During a recession, which of the following will be true?
a. The actual rate of unemployment will be lower than the natural rate.
b. Actual GDP will be lower than potential GDP.
c. The employment/population ratio will increase substantially.
d. Actual inflation will be higher than was anticipated.
B
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An economist claims that "the evidence suggests that high rates of inflation are associated with slow long-term economic growth." This is an example of
a. positive economics b. normative economics c. negative economics d. a simplifying assumption e. microeconomic analysis
The long-run trends of relative prices of primary products suggest that the countries that are dependent on the export of primary products are most likely to
A. slowly catch up with the average per capita income in the industrialized countries. B. experience an increase in their growth rates. C. be able to import more from abroad. D. experience deterioration in their terms of trade.
When unions exist in markets
A) firms must have market power in their output markets. B) there no longer is a perfectly competitive labor supply. C) individual workers no longer make labor-leisure trade-off decisions. D) employers have market power in labor markets.
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