Automatic stabilizers:
What will be an ideal response?
tax and spending institutions that tend
to increase government revenues and
lower government spending during economic expansions but lower revenues and raise government
spending during economic
recessions
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Refer to the figure below. If the Federal Reserve wants to raise the interest rate to 7%, it must ________ the money supply to ________. 
A. increase; 700 B. increase; 900 C. increase; 300 D. decrease; 300
The figure above represents the demand and cost functions facing a Brazilian Steel producing monopolist. The Brazilian firm is charging its foreign (U.S.) customers one half the price it is charging its domestic customers
Is this good or bad for the real income or economic welfare of the United States? Is the Brazilian firm engaged in dumping? Is this predatory behavior on the part of the Brazilian steel company?
During World War I (1914–18), hourly wages
(a) decreased in nominal and real terms. (b) increased in nominal and real terms. (c) increased in nominal terms but decreased in real terms. (d) decreased in nominal terms but increased in real terms.
Which situation would most likely shift the production possibilities curve for a nation in an outward direction?
A. An increase in the amount of discrimination B. A decrease in the state of technology C. An increase in the supply of resources D. A decrease in the quality of products